Barclays U.S. Credit Baa: 3% Issue Capped Bond Index
Medium Quality Credit Fixed Income
The Medium Quality Credit Fixed Income strategy is designed to deliver excess return relative to the taxable fixed-income universe embodied by the Barclays U.S. Credit Baa: 3% Issue Capped Bond Index. The team uses in-depth fundamental credit research combined with a relative value framework to perform security selection and determine sector weightings. The team also seeks to add alpha by actively managing the portfolio’s duration and yield curve exposures to reflect their macroeconomic view. Portfolios typically hold between 60-80% BBB-rated corporate bonds. The balance of the portfolio is invested higher rated investment-grade corporate bonds or BB-rated (high yield) corporate bonds.
Janet S. Rilling, CFA, Senior Portfolio Manager
D. James Newton II, CFA, Head of Investment Grade Credit Research