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.
Market Review and Outlook 4Q21 - Investment Grade and Tax-Exempt Fixed Income
Total returns in the investment grade space are being challenged just like last year, which also saw rates rise and drive returns negative at the inception of the new calendar year. In the tax-exempt space, phenomenal retail demand continued with mutual fund flows for the calendar year topping $101 billion as volatility stayed low.
Market Review and Outlook 4Q21 - Leveraged Finance
In the loan space, merger mania continued to drive issuance, and the confluence of higher inflation and tighter monetary policy drew more retail and institutional investors into floating-rate debt. The high yield market continues to be pulled in different directions. However, we continue to believe that the fundamental backdrop for both asset classes remains supportive.
Hedging Inflation with Bank Loans and High Yield Bonds
Both asset classes offer the potential for enhanced diversification, relatively attractive yields, lower volatility than equities, and attractive risk-adjusted returns.
Understanding the LIBOR/SOFR Transition
Should leveraged loan investors be concerned about the end of LIBOR?
Here are some key points on the forthcoming shift to a new interest rate benchmark.
Market Review and Outlook 3Q21 - Investment Grade and Tax-Exempt Fixed Income
Fed tapering of asset purchases is highly likely to start in November and run through the middle of 2022, even though the economy is clearly decelerating and potentially quite a bit, if reduced GDP expectations from the Atlanta Federal Reserve are any indication.
Market Review and Outlook 3Q21 - Leveraged Finance
In the loan space, retail inflows moderated but remained healthy. CLO formation provided continued support. The 3Q index ticked up modestly, contributing to performance, and default rates remained very low. In high yield, increased COVID cases, slightly higher Treasury yields, weaker economic data, and robust supply levels were the key themes for the quarter.