Investment Management

The U.S. Housing Trade is Far From Over

Executive Summary

  • The U.S. housing market still has meaningful upside - in fact, from several perspectives, we are still in the recovery phase.
  • Market fundamentals are solid:
    • While home prices have just reached the pre-crisis peak, population, labor force and GDP have all increased significantly since the crisis
  • Against this robust economic backdrop, we believe securitized credit is a compelling way for investors to diversify a broader credit portfolio—yet the potential benefits of the asset class remain broadly misunderstood