CLOs are managed portfolios of bank loans that have been securitised into new instruments of varying credit ratings. CLOs have increasingly become the link between the financing needs of smaller companies and investors seeking higher yields.

Agency MBS are issued or guaranteed by one of three government or quasi-government agencies: Fannie Mae, Freddie Mac, and Ginnie Mae. Because of this government support, the credit risk within agency MBS is considered negligible, similar to U.S. Treasuries.

The most liquid component of the European securitised market RMBS are collections of residential mortgages with similar characteristics that are packaged together. The cashflows (principal and interest payments) from the underlying mortgage loans are passed through to service investor debt tranches.

Ultimately, RMBS are important funding mechanisms for household mortgage lenders.

ABS are built around pools of similar cash-flowing assets that include auto loans, credit card receivables, and student loans, all of which grant investors exposure to the consumer credit market.

CMBS are collections of commercial mortgage loans issued by banks, insurers, and alternate lenders to finance purchases of commercial real estate, such as office, industrial, retail, hospitality, and multi-family. CMBS structures help link the financing needs of real estate buyers with investors' capital.