Episode 357: Lessons from the Tranches: How to Pick Good Bonds in Securitized Credit

Noah Funderburk, Portfolio Manager and Director of Securitized Credit at Pioneer Investments, joins the InsuranceAUM.com Podcast for a deep dive into the mechanics that matter most in structured credit.   In this episode, he explores why risk and discomfort are often the source of return, how credit risk and interest rate convexity can compound drawdowns, and why sponsor incentives should never be overlooked. The conversation moves beyond headline yield to focus on tranche-level analysis, correlation risk, asset obsolescence, and securitization structures that delever over time.   For insurance investors allocating to ABS, RMBS, CMBS, and multi-sector portfolios, this discussion offers a practical framework for evaluating complexity, pricing uncertainty, and managing downside risk in an evolving market environment.