Market Review and Outlook 2Q22 - Investment Grade and Tax-Exempt Fixed Income
Higher rates, wider spreads, geopolitical challenges, and recurring volatility underscore need for continued defensiveness.
Market Review and Outlook 2Q22 - Leveraged Finance
According to JP Morgan, when loans trade above 8% and/or below a price of $94.00, forward 12-month returns have historically averaged +9.1%). Meantime, the ICE BofA U.S. High Yield Index ended the first half at a yield to worst of 8.94%, improving the prospects for above-average future returns in that asset class.
Leveraged Loans: An All-Weather Asset Class
While loans remain a hedge against inflation and rising rates, we believe they deserve space in every investor’s fixed income portfolio, regardless of market conditions.
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.