The Credit Edge by Bloomberg Intelligence Third Point Is Looking to Buy as Others Sell Amid Rising Turbulence
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Mar 12, 2026 Shalini Sriram, Head of structured credit at Third Point with deep mortgage‑backed securities experience, discusses opportunistic credit investing amid market dislocations. She highlights private‑label residential, stressed consumer finance, and CLO dislocations. Short windows and liquidity-driven selling create buying openings. Third Point balances origination, secondary trades, and hedging as risks and opportunities shift.
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Dislocation Is A Liquidity Provider's Moment
- Dislocations create the best opportunities for credit investors to act as liquidity providers.
- Shalini Sriram says history shows being able to deploy capital in distress yields contrarian returns across structured credit markets.
Structured Credit Spans A $15 Trillion Opportunity
- Third Point divides structured credit into RMBS, CMBS, consumer ABS, and CLOs across a $15 trillion market.
- Sriram emphasizes each sector touches different parts of the economy, giving many choices for deployment.
Lean Into Private Label Mortgages Now
- Favor private-label residential mortgages and select consumer ABS because of recent house-price gains and consumer finance dislocations.
- Sriram says private-label RMBS and debt tranches offer better risk-adjusted returns than residual equity now.