Strategy Overview
The Asset-Backed Securities (ABS) and Commercial Mortgage–Backed Securities (CMBS) strategies have a high-quality focus and a preference for liquidity premium over credit premium. PIMCO’s approach to ABS is to generate yield by identifying credit risks within ABS securities. Understanding the capital structure is paramount to our CMBS strategy. Given the decreased volatility in CMBS, PIMCO aims to target relative value opportunities through structural and tactical market mispricings.

Applications for ABS/CMBS Strategies

Investment Philosophy and Sources of Added Value

Risk Management/Controls

Related Articles

How To Invest

Related Strategies

Fixed Income


Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. PIMCO strategies utilize derivatives which may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. There is no guarantee that these investment strategies will work under all market conditions and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. Diversification does not ensure against loss.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.