Payden & Rygel’s short-term bond strategies are designed for
investors who seek higher yields than those provided by money market funds
but can withstand varying amounts of incremental price volatility. Customized
to meet the unique investment objectives of each client, the firm’s
short-term bond strategies offer a high quality, diversified alternative
to money market funds and other short-term investments.
Payden & Rygel’s short-term bond strategies generally
fall into three broad categories: enhanced cash,
low duration and low duration
plus.
Enhanced cash
The enhanced cash strategy offers a higher yielding alternative
to short-term investments such as money market funds and bank
certificates of deposit. Short maturity government securities
and non-government securities such as corporate bonds, asset-backed
and mortgage-backed securities are utilized to provide potentially
higher yields than money market funds while offering a comparable
level of principal stability.
Low duration
The low duration strategy is designed for investors who seek
higher yields than those generally available from money market
funds but have a slightly higher tolerance for principal fluctuation.
The strategy generally employs the same types of high quality
investments used in the enhanced cash strategy (e.g. short
maturity government and non-government securities including
corporate bonds, asset-backed and mortgage-backed securities).
The low duration strategy, however, maintains a slightly longer
average maturity.
Low duration plus
The low duration plus strategy is designed for investors
who seek a potentially higher return than that available from
a pure low duration strategy but can withstand a moderate
amount of principal fluctuation. While this strategy employs
the same type of securities as the low duration strategy (e.g.,
short maturity government and non-government securities, including
corporate bonds, asset-backed and mortgage-backed securities),
it may also include investments with a slightly longer maturity
and a lower credit quality. The overall portfolio maintains
a similar credit quality to the low duration strategy, however.
More information on Payden & Rygel's fixed-income,
equity and balanced
investment strategies.
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