Refi Wave: An Opportunity for Active Managers in the Current MBS Market – Janus Henderson – 10.2.19

Summary:

Now On Demand.

With investors hungry for yield, mortgage ETFs have been a popular investment this year. Mortgages have historically provided greater yield than government debt. Investors have allocated more than $9.8 billion year to date and $11 billion over the last 12 months to MBS ETFs*. Should investors continue to flock to this asset class with the impending refi wave?

Interest rate volatility may present opportunities for active managers. Investing primarily in high-quality U.S. Agency MBS, the Janus Henderson Mortgage-Backed Securities ETF (JMBS) focuses on actively leveraging quantitative modeling to identify mispriced opportunities while keeping a high correlation to the U.S. MBS Index.

The webcast will cover:

• Overview of the MBS market and its opportunities and challenges
• The power of modeling borrower behavior and prepayment risk to find opportunity
• Why we believe active management is key to generating alpha in MBS markets

*Bloomberg, as of 8/31/19

Sponsors of this webcast may contact registrants.

Speakers:

John Kerschner is Head of U.S. Securitized Products at Janus Henderson Investors and a Portfolio Manager of the Multi-Sector Income strategy and Mortgage-Backed Securities ETF. He also has co-managed the fixed income portion of the Perkins Value Plus Income strategy since 2018. In his role as Head of U.S. Securitized Products, Mr. Kerschner primarily focuses on mortgage-backed securities and other structured products. Prior to joining Janus in 2010, Mr. Kerschner was director of portfolio management at BBW Capital Advisors. Before that, he worked for Woodbourne Investment Management, where he was global head of credit investing. Mr. Kerschner began his career at Smith Breeden Associates as an assistant portfolio manager and was promoted several times over 12 years, becoming a principal, senior portfolio manager and director of the ABS-CDO group.

Mr. Kerschner received his bachelor of arts degree in biology from Yale University, graduating cum laude. He earned his MBA from Duke University, Fuqua School of Business, where he was designated a Fuqua Scholar. Mr. Kerschner holds the Chartered Financial Analyst designation and has 29 years of financial industry experience.

Nick Childs is a Portfolio Manager at Janus Henderson Investors, a position he has held since 2018. He is responsible for managing the Mortgage-Backed Securities ETF, with a primary focus on valuing opportunities and managing exposure of residential mortgage-backed securities (MBS). Additionally, he is a Securitized Products Analyst. Prior to joining Janus in 2017 as a securitized products analyst, he was a portfolio manager from 2012 to 2016 at Proprietary Capital, LLC, where he managed alternative fixed income strategies specializing in MBS, absolute return investing. His work with Proprietary Capital included managing all major U.S. interest rate and MBS risks, modeling borrower behavior and MBS deal structure, and advancing market-neutral hedging strategies. Before that, he was vice president at Barclays Capital in their capital markets division, where he focused on securitized products from 2007 until 2012. Prior to joining Barclays, he was vice president at Lehman Brothers. He began his career at State Street Global Advisors in 2003.

Mr. Childs received his bachelor of science degree in finance with a minor in economics from the University of Denver. He holds the Chartered Financial Analyst designation and has 15 years of financial industry experience.

Steve Quinn is Head of ETP Distribution at Janus Henderson Investors. Mr. Quinn served as managing partner and head of distribution at VelocityShares, which Janus acquired in 2014. Prior to joining VelocityShares, he managed a team at UBS and was responsible for delivering the company’s capabilities to some of the largest hedge funds and investment complexes in the U.S. He has worked with large asset managers in Chicago and New York, as an executive director at JP Morgan, and in portfolio management at Bankers Trust private bank.

Mr. Quinn received a bachelor of arts degree in business administration from Fordham University and an MBA from New York University. He has 23 years of financial industry experience.