Call Los Angeles-based investment firm Metropolitan West Securities Inc. a spread hawk with a conservative mindset, and you would get little argument from Chief Investment Officer Terry Crow. Charged with managing $20 billion of fixed-income investments, Crow swoops on cheap ABS product that has short maturities and well-defined cash flows.

Over the last three years, the firm has grown its asset-backed portfolio from a scant percentage of overall funds to approximately $4 billion, or 20% of its total investments. Crow said MetWest looks to continue this level of dedication to securitized product going forward, perhaps with some allocations to collateral new to the firm from the CLO and the stranded cost sectors.

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