FICC Focus Credit Crunch: IR+M’s Gubitosi on Corporates, Securitized Value
Mar 2, 2026
Jim Gubitosi, Co-CIO at Income Research + Management with deep experience in securitized products and U.S. dollar fixed income. He discusses where value still sits in securitized front-end paper. He explains active, duration-neutral security selection and why technicals have kept spreads resilient. He warns about concentrated tech issuance and highlights evolving ABS and CMBS opportunities.
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Duration Neutrality With Active Security Selection
- IR+M is a specialized U.S. dollar fixed income firm that stays duration neutral and adds value via bottom-up security selection.
- They match benchmark duration at key-rate levels and add/remove risk tactically rather than trying to predict rates.
Corporate Spreads Are At The Tighter End
- Corporate spreads are very tight (around 80bps OAS) near multi-decade tights, so risk-reward is limited.
- IR+M stays cautious: emphasizing liquidity, front-end corporates, and readiness to buy on weakness.
Pay For Liquidity Insurance Now
- Keep a liquid Treasury/agency bucket as insurance to deploy into spread widening.
- Accept a small yield sacrifice now to hold liquidity that lets you buy opportunistically when spreads widen.