Commonly asked questions regarding South Street Capital Management
What is South Street Capital Management?
South Street Capital Management (“SSCM”) is a capital manager specializing in Residential Mortgage Backed Securities (“MBS”).
The REIT model we execute appeals to the investor in search of income. We seek to provide a diversification tool which will generate a more attractive risk-adjusted rate of return than traditional fixed-income alternatives.
What are benefits of South Street Capital Management?
- Management has extensive experience in Capital Markets, Fixed Income Sales and Trading, Asset/Liability Management and Mortgage Banking. Our experience also comprises multiple housing cycles and interest rate environments.
- SSCM’s strategic partnerships provide access to:
- Wholesale funding markets
- Liability franchise that provides a consistent source of funding, especially during times of market stress
- Mortgage trading platform allows for direct access to mortgage originators, enabling SSCM to buy MBS on the ‘bid side’ of the market
- Investors benefit from our experience managing a public company. Procedures and controls reflect the policies of a publicly traded investment company along with having an independent board of directors, our preference to use nationally recognized accounting firms as auditors, and use of major commercial banks for items such as securities custodian.
- Achieve durable risk adjusted returns over various interest rate, housing and economic cycles
- Identify and capitalize on relative value of discrepancies in the RMBS markets
- Actively manage cash flows to provide for opportunistic investing and regular distributions to our Clients
- Maximize tax efficiency
- Minimize credit risk
- Mitigate the impact that changing interest rates have on the portfolio by utilizing dynamic hedging strategies
- Offer uncorrelated returns vs. other asset classes