SPDR Bloomberg SASB 0-3 Year Euro Corporate Bond ETF (SECR)

Overview

The fund is an investment vehicle focusing on securitized assets, offering investors exposure to a broad spectrum of securities that play a vital role in the global credit markets. By adhering to a strategy that invests at least 80% of its assets in a diverse range of securitized products, the fund aims to provide a balanced and potentially lucrative investment opportunity. This strategy caters to investors seeking to diversify their portfolio beyond traditional equities and bonds, tapping into the income and growth potentials of the securitization sector.

Products and Services

• Commercial Mortgage-Backed Securities (CMBS)

These are bonds backed by commercial mortgages rather than residential real estate. They provide investors with an income stream derived from payments on these mortgages. CMBS can offer higher yields compared to government or corporate bonds, reflecting the greater risk.

• Asset-Backed Securities (ABS)

ABS are securities backed by a pool of assets, typically consisting of receivables such as credit card payments, auto loans, and student loans. ABS can offer a diverse risk profile and potential for yield enhancement, appealing to investors looking for alternative fixed-income options.

• Agency and Non-Agency Residential Mortgage-Backed Securities (RMBS)

RMBS are created by pooling together residential mortgages. Agency RMBS are backed by government agencies, offering a safer investment, whereas non-agency RMBS are issued by private entities and may offer higher yields but with a higher risk of default.

• Collateralized Mortgage Obligations (CMOs)

CMOs are a type of mortgage-backed security in which the cash flows from a pool of mortgages are structured into tranches varying in risk and yield. This structuring allows investors to choose the level of risk and potential return that suits their investment objectives.

• Collateralized Loan Obligations (CLOs)

CLOs are similar to CMOs but are backed by a pool of commercial loans instead of mortgages. They offer investors access to the corporate loan market with a structured product designed to mitigate risks and improve returns.