Inside ESG Investing at Seix
With ESG factors becoming an increasingly important part of investing, here’s how Seix’s leveraged finance, investment grade, municipal, and securitized credit teams apply such metrics.
Market Review and Outlook 2Q23 - Leveraged Finance
Leveraged loans continued to outperform expectations, up seven percent year-to-date, setting the stage for a potential double-digit year. The high yield market continued its low-quality rally during Q2 as spreads on CCCs tightened more than their BB counterparts.
Market Review and Outlook 2Q23 - Investment Grade and Tax-Exempt Fixed Income
Following two consecutive quarters of positive total returns, the investment grade bond market reverted to negative total returns as higher Treasury rates more than offset the income component and any additional excess return from tighter spreads. That being said, the robust Q1 returns leaves the mid-year total returns positive across the board.
Strategically Focused Investments
Our strategies can serve as the core of a fixed income allocation or as a dynamic complement to an existing portfolio.
Our Approach to ESG
The integration of Environmental, Social and Governance (ESG) risk analysis into our existing investment process brings another level of risk assessment to our decision making process. By focusing on discrete risks and potential opportunities related to ESG, we are better able to select those companies with proven business models designed to withstand exogenous shocks. Since inception, Seix has managed portfolios for clients with social exclusions including gaming, weapons and tobacco.
