Cerberus is a leader in mortgage-backed securities (MBS) investing, both residential (RMBS) and commercial (CMBS). The Firm’s RMBS and CMBS investment teams are composed of seasoned professionals whose understanding of these securities and the markets in which they trade is augmented by years of experience with whole loans, liquid products, servicing and securitization.
This unique mix of experience and understanding enables Cerberus’s mortgage-backed investment professionals to successfully manage the complexities of the MBS markets, including rating downgrades, loan modifications, and structural nuances that create pricing inefficiencies. The Firm’s credit and prepayment expertise, coupled with its knowledge of MBS structures, allow Cerberus to identify and act upon such opportunities quickly.
Cerberus’s RMBS and CMBS teams are able to:
- Efficiently restructure downgraded securities to improve return profiles
- Construct portfolios with diversified credit and structure profiles by utilizing the Firm’s expertise in investing across the capital structure and among various product types in every sector
- Add exposure selectively to sectors that they project will outperform market expectations
- Seek to optimize returns regardless of macroeconomic conditions
Cerberus’s portfolio companies provide the Firm’s mortgage-backed securities investment teams the ability to spot important “main street” business trends. Another important competitive advantage is the Firm’s broad network of investment professionals and high-level advisors. These experts provide considerable insight into factors affecting both general and specific loan performance such as macroeconomic indicators, borrower behavior, the regulatory landscape and geopolitical developments.