HSBC Asset Management begins managing securitised credit

HSBC Asset Management began managing securitised credit on October 1, 2026. Securitised credit works by turning pools of loans into tradable bonds, which come with different levels of protection and risk, according to Andrew Jackson, Head of Securitised Credit at HSBC Asset Management. Most of this asset class is floating rate, which helps reduce duration risk.

The offering provides investors with an attractive source of income and potential diversification for existing fixed income allocations. Jackson noted that securitised credit typically pays a premium over corporate bonds and has credit spreads that compare favorably to other fixed income segments.