The Chotin Group has extensive experience in managing asset- and mortgage-backed securities (“ABS” and “MBS”) across the credit spectrum. The firm adheres to its core competencies and invests in real estate ABS, primarily residential mortgage-backed securities (“RMBS”). The Chotin Group uses a bottom-up analysis to identify attractive structured finance securities and relative value opportunities. The firm’s investment team constructs diversified portfolios of structured products through rigorous credit analysis. The Chotin Group generally employs a “hold-to-maturity” strategy, so there is a focus on up-front credit selection, while allowing for flexibility to adapt to changes in the market.

Proprietary surveillance and monitoring systems are utilized to proactively identify credit trends that may affect future performance with a long-term focus on capital preservation. The Chotin Group analyzes assets using both qualitative and quantitative methods focused on loan-level collateral attributes. The firm uses cash flow modeling under multiple interest rate and prepayment scenarios to determine structural protections. The Chotin Group also monitors key performance indicators of originators and servicers associated with underlying RMBS collateral.