Structured products form the core of our client portfolios because they have historically exhibited superior credit migration with greater yields than similarly rated corporate bonds. This combination of superior credit performance and attractive yields has led to high Sharpe, or information ratios for structured product securities. AAM manages over $6.97 billion in these instruments in the form of Collateralized Mortgage Obligations (CMOs), Asset Backed Securities (ABS), and Commercial Mortgage Backed Securities (CMBS).

In addition to the favorable credit profiles, structured products also benefit an insurance company's portfolio by providing a more predictable stream of cashflows. This call protection leads to more favorable convexity characteristics for the portfolio. This is especially important if the asset, or pool of assets, is intended to offset a future liability, as in a Targeted Duration strategy.

AAM's structured products team consists of 4 investment professionals with over 50 years of combined investment experience. Our team's expertise in this sector, which incorporates proprietary monitoring and surveillance tools, is an attractive benefit to our clients.

The combination of our expertise and the stability of credit quality, with attractive yield and total rate of return performance history, offers a compelling reason for an insurance company to segment this asset class for management by AAM.