Securitized Assets Offer Yield and Diversification as Fed Eases

Nuveen’s Global Investment Committee, led by CIO Saira Malik, highlights opportunities in securitized credit against the backdrop of softer inflation and a weakening U.S. labor market.

• Fed rate cuts are increasingly likely after downward payroll revisions and elevated jobless claims, boosting equities and compressing credit spreads.

• Securitized assets—MBS, ABS, and CMBS—currently yield 5.4–5.9%, offering income with shorter duration and lower rate sensitivity.

• Expanding beyond index-eligible securities can unlock additional alpha and improve portfolio diversification.

How can securitized assets enhance fixed income strategies as policy shifts toward easing? Explore the full commentary for allocation insights.