TCW MetWest Sustainable Securitized Fund Q3 2025 Commentary
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The TCW Group36 FollowersFollow5ShareSavePlay(10min)CommentsSummaryThe third quarter of 2025 unfolded against a backdrop of shifting monetary policy and resilient risk appetite.The TCW MetWest Sustainable Securitized Bond Fund I-Class gained 1.94% net of fees in the third quarter of 2025.Diversified exposure to off-Index securitized products contributed positively to performance.The Fed's recent pivot toward easing has helped stabilize rate volatility and improve liquidity across securitized markets. Ta Nu/iStock via Getty Images Market Review Navigating a Shifting Curve The third quarter of 2025 unfolded against a backdrop of shifting monetary policy and resilient risk appetite. After a summer marked by weakening labor market signals – underwhelming payroll prints andThis article was written byThe TCW Group36 FollowersFollowTCW is a leading global asset management firm with more than five decades of investment experience and a broad range of products across fixed income, equities, emerging markets, and alternative investments. TCW’s clients include many of the world’s largest corporate and public pension plans, financial institutions, endowments and foundations, as well as financial advisors and high net worth individuals. Note: This account is not managed or monitored by TCW, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use TCW's official channels.Quick InsightsHow did MWESX's underweight to agency MBS impact Q3 performance?The structural underweight to agency MBS was the primary headwind, as agency MBS rallied on Fed rate cuts, causing MWESX to lag its benchmark by 49 bps.What sectors and structures are prioritized for forward positioning in MWESX?MWESX emphasizes agency MBS (lower and belly coupons), non-agency MBS, SASB-focused CMBS, and non-traditional ABS, targeting sectors with structural resilience and attractive relative value.How is MWESX positioned for further rate cuts and macro uncertainty?MWESX maintains a slightly longer-than-index duration (+0.2 years) and an overweight to the front end, seeking to benefit from declining rates while preserving risk-adjusted return potential.Recommended For You