Australian Securitised Debt in Multi-Asset Portfolios

September 2025 – 10 min read

Australian investors constructing balanced portfolios should consider the benefits of a dedicated allocation to Australian securitised debt. Gryphon Capital Investments (a Barings company) explains why.

Introduction

Investors constructing balanced portfolios composed of equities, fixed income, and alternatives have traditionally sought a blend of income, capital preservation, diversification, and liquidity. Within fixed income, traditional allocations tend to focus on government bonds, investment-grade credit, and some exposure to high yield credit.

However, for Australian investors, a dedicated allocation to Australian securitised debt (such as Residential Mortgage-Backed Securities (RMBS) and Asset Backed Securities (ABS)) can offer compelling benefits for income-focused portfolios.

These benefits can include stability across market cycles, reliable monthly income, portfolio diversification, liquidity protection and improved risk-adjusted returns.

“Despite the complexity of the asset class, support for securitised debt has grown within wealth markets in recent years, reflecting the increasing opportunity.”

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Headshot of Alex Brandford smiling at the camera.

Alex Bradford

Senior Associate, Quantitative & ESG Analyst, Gryphon Capital Investments
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Jonathan Baird

Head of Australian Wealth Distribution

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