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Asset Backed Securities and Bond Holdings
Overview
Asset class
Real estate
Asset type
Bond/Asset-backed security
Strategy
Fixed income
Funds
Flagship Real Estate Fund
Asset type
Bond/Asset-backed security
Bonds and asset-backed securities are both investment securities that offer ways to earn income by lending out money. A bond is typically a loan made to a single entity, like a government or company, which becomes a general obligation of that entity. An asset-backed security is typically a loan backed by the cash-flows of a set of specifically defined assets. Often this might mean multiple loans pooled together — such mortgages or car loans—into a single investment, spreading out risk and earning income as the loans get repaid. In real estate, there are often different types of asset backed securities such as Commercial Mortgage-Backed Securities (CMBS), Mortgage-Backed Securities (MBS), and Commercial Real Estate Collateralized Loan Obligations (CRE CLOs) Generally, all these investment securities offer a pre-defined fixed return and lower risk relative to equity (or stock) investments.
