Investing in Distressed Junior Mortgages

January 22, 2021

Many investors are curious about what asset classes are going to perform best in our current economic environment. Investors intuitively understand that distressed asset classes perform well in struggling & recovering economies. However, unless you wait around for deals on foreclosure auctions, it’s difficult to know how to participate in this counter-cyclical asset class.

With a continued strong housing market, distressed real estate debt can be attractive. Particularly, in the hidden niche of junior residential mortgages. Because it’s too small of a market and too difficult to source for large institutions, it keeps competition lower and risk-adjusted returns strong.

Listen as Vice President of Aspen Funds, Ben Fraser, walks us through this unique investment class, case studies, and how you can achieve attractive risk-adjusted returns.