As we near the end of what will go down on record as one of the most tumultuous and worst performing years on record for structured products, and all of fixed income, we set our sights for what is on the horizon for 2023. With yields having risen to levels unseen for over a decade, the income provided by debt securities once again will provide the key characteristic that most investors seek in that component of their asset allocation. Additionally, yields have risen to the point that bonds can for the first time in many years benefit
investors during times of crises in equity markets – a key diversification benefit that was lost during the era of an ultra-accommodative Fed. There is now room for yields to fall, lifting bond prices higher, during these flight to safety/quality/liquidity events. As we frame out our views for 2023, we will start with a recap of the current year before delving into our fundamental views on housing and mortgages and finishing with opportunities in the current Non-Agency MBS (RMBS) market and related sectors.
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Opinions expressed in this document represent the views of Semper Capital Management, L.P., are valid only as of the date indicated, and are subject to change without notice. There can be no guarantee that any of the opinions expressed in this document or any underlying position will be maintained at the time of this presentation or thereafter. We are not soliciting or recommending any action based on this material. The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any limited partnership interests or shares in any fund or to participate in any trading strategy. If any offer of limited partnership interests or shares is made, it shall be to be qualified investors pursuant to a definitive PPM or Prospectus prepared by or on behalf of the funds and contains material information not contained herein. Any decision to invest in limited partnership interests or shares should be made after reviewing the definitive PPM or Prospectus for the fund, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequence of an investment in the fund.
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