TAMPA,
Fla., Oct. 29, 2024 /PRNewswire/ -- In a new
research paper, Stephan Diaz
Ellinghaus, a Specialist on DoubleLine's Asset-Backed
Securities (ABS) team, and Client Portfolio Manager Phil Gioia, CFA, find in data center ABS
"high-yielding investment opportunities with modest risk."
The paper, "Securitizing the Digital Present & Future:
Investing in Data Center Asset-Backed Securities (ABS)," can be
accessed here:
https://doubleline.com/wp-content/uploads/Securitizing-the-Digital-Present-and-Future_October-2024.pdf
Data centers provide critical infrastructure, Messrs. Diaz and
Gioia write, "to support the technologies that are now critical to
people's everyday lives." These include emerging technologies such
as machine learning, virtual reality, augmented reality and
artificial intelligence as well as established ones, for example,
email, messenger, streaming and social media.
Securitization, the authors note, is a rapidly growing avenue
for the financing of data center assets. Primary-market issuance is
"on track to hit record issuance in 2024, with more than
$8 billion expected. The total data
center ABS market outstanding could reach $50 billion by 2027, up from $25 billion in 2024."
DoubleLine, they write, is finding compelling opportunities in
data center ABS throughout the capital structure. Subordinate and
mezzanine tranches at present "offer the most attractive
risk-adjusted return profiles. Like the senior tranches, the
subordinate tranches are generally resilient to stress cases and
benefit from the same industry dynamics and sticky client base and
have more attractive spread and yield."
About the DoubleLine Asset-Backed Investment Team
The Asset-Backed Securities Investment team manages $5.2 billion in ABS investments as of the close
of the third quarter 2024. Its seven members have worked together
since 2013 and, among other professionals, call upon the additional
support of 60 corporate and structured-products analysts and 21
risk analysts at DoubleLine. DoubleLine enjoys captive sourcing
channels including securitizations of financings of data centers
and other telecommunications infrastructure. The team has extensive
experience in public and private ABS markets across the risk
spectrum.
About DoubleLine
DoubleLine Capital LP is an investment adviser registered under
the Investment Advisers Act of 1940. DoubleLine's offices can be
reached by telephone at (813) 791-7333 or by email at
info@doubleline.com. Media can reach DoubleLine by email at
media@doubleline.com. DoubleLine® is a registered
trademark of DoubleLine Capital LP.
DoubleLine ||
2002 North Tampa Street, Suite 200 ||
Tampa, FL 33602
|| +1 (813) 791-7333
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SOURCE DoubleLine