Summary

• With more than $63 trillion of bonds outstanding, the U.S. fixed income market is the largest in the world, representing roughly 40% of the global bond market.
• One of the largest and often least familiar areas of the market is structured credit, particularly asset-backed securities (ABS).
• ABS can provide unique cash flow characteristics and risk drivers that differ from those of traditional corporate bonds and MBS, creating opportunities for diversification and differentiated sources of return.

With more than $63 trillion of bonds outstanding, the U.S. fixed income market is the largest in the world, representing roughly 40% of the global bond market. Yet despite its immense size and importance, much of the market remains unfamiliar to investors.