The specialization built in to our investment process positions us to evaluate assets and implement strategies that require deeper analysis, focused resources, and specialized expertise. Our core competencies in credit, structured products, and due diligence lead us to parts of the fixed-income market that are not included in the popular benchmark, the Bloomberg Barclays Aggregate index (Agg).
Achieving yield targets while maintaining an investment-grade portfolio is possible, but it requires a willingness and ability to look beyond the benchmark. At $19 trillion, the Agg represents less than half of the total U.S. fixed-income universe, leaving out $21 trillion in securities that do not meet its requirements for inclusion, including bank loans, high-yield bonds, and non-Agency MBS, as well as the majority of the ABS and municipal sectors, many of which carry investment-grade credit ratings. We believe our ability to uncover value in securities outside of the traditional benchmark-driven framework puts our clients in the best position to benefit from our pursuit of compelling risk-adjusted return opportunities. At the heart of this investment proposition is the structure of our investment process, which allows our best ideas to be expressed in actively managed portfolios.