Why should investors consider high-quality European RMBS?

Mark Holman believes mortgage-backed securities still provide opportunities to pick up good income yields

From the third quarter of 2007 through to the first quarter of 2009, the credit markets experienced systemic widening, with the structured credit universe particularly impacted as banks and investment vehicles deleveraged in the face of a severe financing squeeze. With such a systemic move, assets were sold regardless of quality over a prolonged period. The result was a highly oversold market with little discrepancy between the good and bad assets. Subsequently, once the panic and forced selling eased there were, and still are, excellent opportunities for investors to take advantag...