Boston, September 29, 2011 – A new report from Aite Group analyzes fixed income securitized debt products, examines the nature of the securities contained within these products, and provides an understanding of the issues these products pose.

Fixed income securitized products (securitized debt or collateralized debt securities) are debt securities—in the form of pass-throughs and tranched securities—that are collateralized by loans, lease payments, or future earnings. These products differ from unsecured debt in the way they are analyzed by capital-at-risk decision-makers; this difference has implications for vendors of data and analytics. Investors, for their part, must be able to make sense of the mountainous amounts of data and calculations of securitized debt in order to properly price risk in this space and ensure efficient pricing and true price/value discovery.

“Despite the black eye of MBSs by way of so-called liar and subprime loans, the collateralized securities market remains a significant and vital part of the U.S. fixed income markets,” says John Jay, senior analyst with Aite Group and author of this report. “Collateralized securities are subject to the idiosyncratic credit, prepayment, and structural risks of a given pool of assets. Their trading, valuation, analysis, and risk assessment, by their very nature, make securitized products a fixed income sector with a difference.”

This 17-page Impact Note contains nine figures. Clients of Aite Group's Institutional Securities & Investments service can download the report.