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Market Opportunity

Structured credit is a large and diverse cross cycle investment opportunity that is often under-represented in financial advisors portfolios.

U.S. Bond Market $44.3 Trillion*

  • Treasuries16,673
  • Municipals3,855
  • Securitized Credit11,229
  • Money Market1,045
  • Corporate9,598
  • Federal Agency1,826
U.S Bond
Market

$44.3 Trillion*

  • Agency Debt 4%

  • Agency
    RMBS 16%

  • Non-Agency
    RMBS 2%

  • CMBS 3%

  • ABS 2%

  • CLO/CDO 2%

  • Money
    Market 2%

  • Treasuries 37%

  • Corporate
    Debt 22%

  • Munis 8%

Agency Debt 4%
Agency
RMBS 16%
Non-Agency
RMBS 2%
CMBS 3%
ABS 2%
CLO/CDO 2%
Money
Market 2%
Treasuries 37%
Corporate
Debt 22%
Munis 8%
U.S Bond
Market

$44.3 Trillion*

Click sections to view breakdown

1WS Target
Market

$4.1 Trillion*

  • ABS 23%

  • CLO/CDO 19%

  • Non-Agency
    RMBS 26%

  • CMBS 32%
ABS 23%
CLO/CDO 19%
Non-Agency
RMBS 26%
CMBS 32%
1WS Target
Market

$4.1 Trillion**

*Source: SIFMA, Federal Reserve as of Q4 2019; Non-agency structured credit as of Q3 2019 | **SIFMA as of Q3 2019

1WS INVESTMENTS PROFILE

We focus primarily on a subset of Asset Backed Securities and other Structured Credit with a demonstrated ability to extract attractive cross-cycle risk premiums typically not offered via generic fixed income exposure.

We concentrate on cross-over and below investment-grade structured securities to capitalize on our fundamental credit and capital structural expertise to identify nuanced structural features that can deliver idiosyncratic return opportunities.

Structured Credit Asset Types

ABS

Asset Backed Securities are collateralized by loans or leases on a myriad of alternative consumer, commercial, or whole business assets. Among the more common consumer based ABS are auto loans and student loans while commercial ABS include loans and leases on assets such as shipping containers and aircraft.

AGENCY DEBT

Debt issued by two types of entities: 1) Government Sponsored Enterprises (GSEs), usually federally-chartered but privately-owned corporations; and 2) Federal Government agencies which may issue or guarantee these bonds—to finance activities related to public purposes.

CLO/CDO

Sometimes referred to as corporate ABS, Collateralized Loan Obligations and Collateralized Debt Obligations are securitized from pools of debt securities. CLOs are backed by 1st lien corporate loans, often referred to as bank loans or levered loans. CDOs are backed by various interest bearing debt instruments including bank trust preferred securities “Trup CDOs”, CRE debt, REIT debt among others.

CMBS

Commercial Mortgage Backed Securities are bonds collateralized by loans on commercial and multifamily (5+ family) real estate. Underlying properties include apartment buildings, office buildings, retail centers and malls, industrial complexes, hotel and lodging properties among others.

CORPORATE DEBT

Debt issued by companies to raise capital.

MONEY MARKET

Short term debt securities that mature in less than one year.

MUNI

Municipal debt issued by a state, municipality or a county to finance its capital expenditures.

OTHER INVESTMENTS

The Fund may also invest in various other debt obligations, such as mezzanine, senior secured and unsecured bonds/ loans and other income-producing investments.

RMBS

Residential Mortgage Backed Securities are bonds collateralized by loans on 1-4 family residential real estate with a wide range of underlying maturities, mortgage rates and credit quality. The RMBS market is the largest subsector within structured credit.