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.
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.
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.