Fixed Income

Our investment philosophy sets us apart

We believe identifying and exploiting the risks and opportunities in today's fixed-income markets require truly active management, a commitment to fundamental research, and the resources to execute consistently.

Philosophy and process

We believe fixed-income opportunities are best exploited by specialists.

Our investment process is built around skilled individuals in highly specialized roles, identifying potential alpha-generating strategies in their areas of expertise.

We believe team-based active management leads to more efficient portfolios with better diversification.

Our team pursues multiple sources of alpha across a broad investment universe, seeking to take advantage of flexibility and eliminate unintended concentrations of risk.

We approach risk differently.

We seek to create opportunities through active allocation to sources of risk, not sectors.

Our process is a competitive advantage.

  • Our portfolio construction process is team-based, specialist-driven, and risk-oriented, and has been in place for over 15 years.
  • Our portfolios seek to deliver a diverse set of best ideas without the bias of an individual portfolio manager.

Risk-based framework focuses on four key areas in pursuit of alpha generation

Term structure

Value of cash flow over time


Yield curves

Level, slope, bend

Currency

Real versus nominal rates

Credit

Ability of a borrower to repay cash flow

Corporate

Investment grade and high yield

Mortgage

Residential and commercial MBS

Sovereign

Developed and emerging markets

Prepayment

Timing of receiving cash flow


Agency MBS

Collateralized mortgage obligations

IOs and POs

Callable corporate and government bonds

Liquidity

Ability to trade cash flow at the fair price

Pricing, volatility risk

Spreads not associated with fundamental loss

Fixed-income capabilities

A full range of benchmark-oriented and absolute return products

Strategy Category Inception date Benchmark
Core Global Fixed Income Multi-Sector Benchmark-oriented August 31, 1993 Barclays Global Aggregate Bond Index
Core Plus Fixed Income Multi-Sector Benchmark-oriented June 30, 1991 Barclays U.S. Aggregate Bond Index
Dedicated Mortgage Securitized Product Strategies July 31, 2009 BofA Merrill Lynch 1-Month Libor
European High Yield Single Sector Benchmark-oriented September 30, 1999 BofA ML European Currency HY Constrained Index 100% Hdgd EUR
Fixed Income Global Alpha Absolute Return Fixed Income August 31, 2008 BofA Merrill Lynch 1-Month Libor
Fixed Income Global Alpha Plus Absolute Return Fixed Income October 31, 1988 BofA Merrill Lynch 1-Month LIBOR
Barclays U.S. Aggregate Bond Index
Global High Yield Single Sector Benchmark-oriented March 31, 2003 BofA ML Global HY IG Country Const 100% USD Hgd Index
Investment Grade Corporate Credit Single Sector Benchmark-oriented September 30, 2009 Barclays U.S. Credit Corporate Bond Index
U.S. Convertible Securities Single Sector Benchmark-oriented September 30, 2009 Barclays U.S. Credit Corporate Bond Index
U.S. High Yield Single Sector Benchmark-oriented July 31, 1993 JPMorgan Developed High Yield Index
Ultra Short Duration Income Unconstrained Fixed Income July 31, 1993 JPMorgan Developed High Yield Index

Browse our Perspectives

Fed walks a line between inflation and financial stability

Fed walks a line between inflation and financial stability

Given the fragilities in financial markets, the Fed will likely move cautiously in monetary tightening to fight inflation.

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Will interest rates go down?

Will interest rates go down?

Our base case for our strategy remains that a recession will wipe out excess savings, and the relatively low interest-rate environment will return.

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U.S. recession outlook as China reopens

U.S. recession outlook as China reopens

We outline possible scenarios for inflation and recession in the year ahead and how global forces play roles.

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