Dedicated to Fixed Income Investing

Investment Grade Taxable and Tax-Exempt Fixed Income: Trade Slows, Economy Cools, Credit Soars, Repos Spike, and Munis Rock

Continuing to focus on very high quality (i.e., no leverage, no derivatives), we expect to be well positioned when quality spreads widen out, which they will at some point. We have since reduced our barbell approach, and have also capitalized on trading on inefficiencies in the market during illiquid periods.

As Economy Cools, A Flight to Safety

While uncertainty and headline risk persist in retail and energy, the positive fundamentals which drive security selection are in place for most industries. Market prices of loans are still below normal averages, providing technical upside.