Structured Products

Standish's team of dedicated structured product analysts extensively research commercial mortgages and asset-backed securities. Using a combination of fundamental and quantitative research, our structured product analysts identify securities with stable-to-improving credit characteristics and well-structured pools which produce favorable cash flow profiles.

Our analysts review specific asset pools, perform loan level analysis and determine the relevant factors affecting their cash flows. In selecting bonds, we analyze issuer quality and underwriting standards, the servicer's loss mitigation platform, asset characteristics versus comparable transactions, asset diversification, and credit enhancement and other structural features. We also look at the historical performance of comparable pools across issuers and within the issuer in question. Looking at the past performance of similar deals in conjunction with the security level analysis provides valuable information used in forming our projections with respect to prepayment speeds, delinquencies, defaults and losses. Our goal is to find bonds secured by assets whose performance is expected to remain stable or improve over time. We also look for bonds whose expected prepayment profile provides us with favorable cash flow characteristics given our entry price point (premium or discount).

For more information on any Active Fixed Income product, please contact Eric Pflaum at epflaum@standish.com