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 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.
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 2Q21 - Leveraged Finance
Another Strong Quarter as Economy Re-opens
Solid economic growth has significantly reduced default risk and should allow leveraged loan and high yield issuers to de-lever and grow into their balance sheets.
Market Review and Outlook 2Q21 - Investment Grade and Tax-Exempt Fixed Income
Peak Growth, Peak Inflation, Rates Rally
As a result of a modestly “less dovish” stance by the Federal Reserve (Fed), long Treasuries were up almost 6.5% in the second quarter after being down 13.5% in the first quarter. Long TIPS (Treasury Inflation-Protected Securities) were up over 8% compared to an 8.8% decline in the first quarter, as they benefited from the upside surprises seen in the consumer price index over the quarter.
Inflation Perspectives with Seix’s Head of Leveraged Finance
George Goudelias shares his latest thoughts on the prospects for inflation and how certain asset classes may help protect portfolios in an inflationary environment.