Payden & Rygel pioneered cash management strategies for institutions nearly three decades ago. Since that time, our short-term bond strategies, which initially focused on liquidity management of operating funds or sweep funds, have expanded to meet the dynamic needs of our clients and the ever-changing investment landscape.

Our 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.

Today, Payden & Rygel's short-term bond strategies generally fall into three broad categories: enhanced cash, low duration and low duration plus.

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 seeking to achieve a comparable level of principal stability.

Benchmark	3-month U.S. Treasury-Bill Money Markets Funds
Securities Employed	Governments, mortgage-backed securities, asset- backed securities, corporates, commercial paper
Maturity Range	0 - 5 years
Duration Range	0.25 - 1.5 years
Average Credit Quality	AA

The low duration strategy is an alternative to cash and short-term bank deposits, designed for investors seeking higher yields than generally available from money market funds, and who are slightly more tolerant of principal fluctuation. The portfolio structure is based upon a client’s liquidity requirements. Typical clients include corporate operating funds, construction funds, hedge funds, university operating funds, pension funds, central banks, foundations/endowments, public funds and individuals.

Low duration investments range from money markets, asset- and mortgage-backed securities, corporate bonds, US and international securities.

Benchmark	Merrill Lynch 1-3 year Treasury Index or Merrill Lynch 1-3 year Government/Corporate Index
Securities Employed	Governments, mortgage-backed securities, asset-backed securities, corporates
Maturity Range	0 - 5 years
Duration Range	1.5 - 2.5 years
Average Credit Quality	AA

The low duration plus strategy is designed for investors who seek a potentially higher return than that available from a pure low duration strategy and who 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.

Benchmark	Merrill Lynch 1-3 year Treasury Index or Merrill Lynch 1-3 year Government/Corporate Index
Securities Employed	Governments, mortgage-backed securities, asset-backed securities, corporates
Maturity Range	0 - 7 years
Duration Range	1.5 - 3.5 years
Average Credit Quality	AA