Scott Thomas, Executive Director, Senior Research Analyst, Columbus Fixed Income for J.P. Morgan Investment Management
Scott Thomas is a speaker at iGlobal Forum’s upcoming 3rd Securitization Finance Summit on November 13th in New York. He is one of the senior analysts responsible for credit research of ABS, CMBS, and Non-agency MBS. Scott has been involved in various off-the-run asset classes for several years, and will be using this knowledge to speak on the closing panel of the day: “Exploiting Off-The-Run Securitization Opportunities.”
Q: How have you seen the challenges associated with asset backed securities, commercial mortgage backed securities, and non-agency mortgage backed securities markets change?
A: The structured credit markets are constantly changing. The major changes we have seen lately in these markets have come both from regulatory changes and rating agency changes. Additionally, as spreads have tightened and net new issuance has gone negative, we have looked to select off-the-run asset classes to continue to add value to our clients.
Q: How is the competition changing in off-the-run asset classes?
A: Post crisis, we were early investors in some off-the-run sectors. As more investors become comfortable with the risks associated with some of the asset classes, we have seen increased competition in terms of investor demand.
Q: What steps are companies like J.P. Morgan taking to assure continued success in these asset classes?
A: We continue to utilize our bottom-up fundamental analysis when analyzing off-the-run asset classes and remain diligent in buying only where we see value for the risk associated with the collateral and structure of the transactions.
Q: How can specific off-the-run assets be positive core holdings for long-term investment portfolios?
A: Off-the-run assets allow investors the opportunity to diversify away from consumer and/or residential real estate risks associated with some traditional ABS and RMBS.