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Credit

Credit

Approach


Our Global Credit strategies employ a research-driven approach grounded in disciplined risk management.

Global, Forward-Looking Research
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Our credit team uses a dynamic forward-looking research approach, allowing us to focus on factors we believe will drive the future performance of an individual security and respond more proactively to changing trends in the corporate bond market. We aim to take advantage of attractive opportunities and benefit from diversification across global credit markets.

Active, Fundamental Security Selection
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Our research-driven investment process strives to identify the bonds with the greatest performance potential within each industry. We believe that investing in issues, not issuers, leads to successful credit selections. In our view, the most efficient way to minimize default losses is to evaluate whole enterprises through an active, research-intensive approach.

Disciplined Risk-Managed Approach
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Credit’s risk profile demands sophisticated analytics and processes to detect and mitigate risk. We believe being aware of sources of portfolio risk on a daily basis supports our objective of delivering high risk-adjusted returns while minimizing default losses.

Benefits


Comprehensive credit research

We seek to uncover attractive investments by performing extensive fundamental research. We have a team of research analysts supporting our credit platform, in addition to resources from our broader fixed income platform which include specialists in emerging markets, real estate and commodities. Our analytical approach has both qualitative and quantitative inputs. We evaluate management and sponsors to determine their strategies and competitive strengths and we try to understand the potential volatility and risk of default at each level of a capital structure.



Macroeconomic perspective

We perform our fundamental research in the context of a fully articulated macroeconomic perspective.  While idiosyncratic risk may dominate the credit landscape, we believe the performance of individual credits and sectors may be materially influenced by trends in economic growth, defaults and investor risk appetite.  We articulate a view on key macro drivers that we believe will affect the performance of credit and translate that into the top-down characteristics that we think will benefit our portfolios. 

Robust risk management

We utilize our extensive suite of risk tools to gauge the alignment of our portfolios to our macroeconomic views and to the specific targets we set at a sector, issuer and CUSIP level. We build portfolios with deliberate targets for diversification and scale our over- and underweights based on our conviction as well as the likely liquidity and volatility of each credit. We scrutinize performance by decomposing risk factors both at a portfolio and a single-name level. 

Strategies



Approach


We apply a bottom-up, fundamental approach to investing across corporate credit markets. We emphasize a focus on capital preservation and risk-adjusted returns over the long-term through disciplined single-name credit selection.

Flexible Investment Strategy
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We invest across the spectrum of corporate credit and identify what we believe to be the best-risk adjusted return. Rather than focusing on a single asset class, our investment universe ranges from investment grade to high yield and broadly syndicated loans.

Focus on Credit Selection
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We pursue high conviction ideas through a bottom-up, fundamental approach to investing. Not limited by the constraints of a benchmark, we seek to identify compelling value in select issuers across the corporate credit spectrum.

Capital Preservation
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Our defensive approach places a heavy emphasis on capital preservation. We seek to preserve capital through minimizing event risk via our credit selection process while maintaining a low interest rate profile.

Benefits


Alpha generation through credit selection

Inefficiencies in credit markets may create attractive opportunities. We have the ability to potentially generate alpha through our credit selection approach by investing in select issuers and avoiding issuers that we do not believe represent value.

 

Attractive source of yield

We believe our investment approach is differentiated in its ability to participate in the performance of the corporate credit market with lower volatility. We seek to maximize risk-adjusted returns through our disciplined approach.

Experienced alternatives team

With a long history of credit alternatives investing, the team’s senior portfolio managers have experience managing corporate credit through multiple credit cycles.