Securitized Credit

Approach

This strategy invests in fixed income sectors collateralized by distinct asset types: commercial real estate (CMBS), residential housing (RMBS) and nonmortgage assets (ABS). We believe superior risk-adjusted returns are achieved through: recognition that relationships among alpha sources change, sometimes irrespective of the business cycle; fluid utilization of loan level research to discover unrecognized value ahead of consensus; and dynamic application of both macro and security-level investment inputs.

Key Benefits

  • Skill of Team: Expertise of a veteran team that has the skill and ability to manage across the securitized spectrum, adjusting exposure to alpha drivers as market conditions change
  • Integration of Platform: Integration into the broader MBS team, partnerships with the Voya Commercial Mortgage Loan and the Voya Senior Loan teams allows for deeper and direct insight to investment ideas
  • Uniqueness of Approach: Our through the cycle approach focuses on consistency and risk-adjusted returns across market environments; not predicated on temporary dislocations

Performance

Performance

As of 4/30/181 Month3 MonthYTD1yr3yr5yr10yrSince Inception (11/01/14)
Composite Gross0.040.840.716.295.85N/AN/A6.10
Composite Net0.000.730.565.825.38N/AN/A5.63
Index*-0.51-0.54-1.68-0.370.96N/AN/A1.38
Gross Excess Return0.541.382.396.664.89N/AN/A4.72

* Bloomberg Barclays U.S. Securitized Index

Past performance does not guarantee future results.

Periods greater than one year are annualized. Performance data is considered final unless indicated as preliminary. Monthly performance is based on full GIPS Composite returns. Access the GIPS page for full composite details.

The Composite performance information represents the investment results of a group of fully discretionary accounts managed with the investment objective of outperforming the benchmark. Information is subject to change at any time. Gross returns are presented after all transaction costs, but before management fees. Returns include the reinvestment of income. Net performance is shown after the deduction of a model management fee equal to the highest fee charged.

Literature

Fixed Income Capabilities Guide

Voya exploits alpha opportunities across the fixed income spectrum, with differentiated capabilities beyond traditional sectors.

Approved For: Financial Professional or Qualified Institutional Investor Use Only

Market Insight: The U.S. Housing Trade Is Far From Over

The U.S. housing market still has meaningful upside. In fact, from several perspectives, we are still in the recovery phase. Against a robust economic backdrop, we believe securitized credit is a compelling way for investors to diversify a broader credit portfolio—yet the potential benefits of the asset class remain broadly misunderstood. In this analysis, we reveal why we believe securitized credit has become a “through-the-cycle” allocation.

Approved For: Financial Professional or Qualified Institutional Investor Use Only

Investment Team

Dave Goodson

Dave S Goodson

Head of Securitized

Years of Experience: 22

More Info

Dave Goodson is head of securitized fixed income and a senior portfolio manager for Voya Investment Management’s non-agency and agency mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities strategies. Prior to joining the firm, he was a principal at an independent investment bank focused on asset-backed commercial paper transactions. Dave began his career as a vice president in Wachovia Securities’ asset-backed finance group, marketing and executing securitizations for the bank’s corporate clients. He received a BS in management from the Georgia Institute of Technology.

Principal Risks

All investments in bonds are subject to market risks. Bonds have fixed principal and return if held to maturity, but may fluctuate in the interim. Generally, when interest rates rise, bond prices fall. Bonds with longer maturities tend to be more sensitive to changes in interest rates. All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. High Yield Securities, or "junk bonds", are rated lower than investment-grade bonds because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. High-yield bonds may be subject to more Liquidity Risk than, for example, investment-grade bonds. This may mean that investors seeking to sell their bonds will not receive a price that reflects the true value of the bonds (based on the bond’s interest rate and creditworthiness of the company). High Yield Bonds are also subject to Economic Risk which describes the vulnerability of a bond to changes in the economy.