Securities backed by US commercial real estate debt, leveraged loans or residential mortgages are insulated from potential economic shocks like Brexit or a Chinese currency devaluation, says SkyBridge senior fund manager Troy Gayeski (pictured).

“What we’re talking about is credits that are more sensitive to the US economy, that are backed by US assets, that are trading at very wide spreads,” Gayeski tells Bloomberg. “If you can get high single-digit or low-teens yields owning US assets that will really only struggle if we have a dark, deep recession, that’s a pretty good outcome.”

Unfortunately for would-be investors, the supply of these types of securities is falling, with $18.5B of bonds backed by commercial mortgages sold this year, down 30% from the same period in 2015. [Bloomberg]