Payden & Rygel’s core bond strategies are designed
for investors who seek relatively higher, long-term yields
but can accept near- term price volatility. The firm’s
core bond strategies can provide diversification and high
current income in an overall asset allocation plan. These
strategies accommodate an array of specific mandates, but
generally fall into three main categories: intermediate,
core and core plus.
Core bond portfolios vary greatly in today's environment as
investment managers push the boundaries of what typically
defines a core bond portfolio. Payden & Rygel is committed
to delivering the traditional benefits of a core bond strategy
and believes there should be "no surprises" in client
portfolios. The firm achieves this objective via core fixed-income
strategies tailored to meet each client's unique investment
goals and tolerance for risk.
Intermediate
The intermediate core bond strategy strikes a compromise between yield
and price volatility. This strategy offers a slightly lower yield than
other core bond alternatives due to its shorter average maturity that
helps protect against adverse price moves in a rising interest rate environment.
The strategy generally invests in securities with maturities in the 1-10
year range, and includes sectors such as Treasuries, Agencies, investment-grade
corporates and asset-backed and mortgage-backed securities.
Core
The core bond strategy takes advantage of all maturities and sectors in
the investment-grade universe. The strategy generally invests in securities
with maturities in the 1-30 year range and includes sectors such as Treasuries,
Agencies, investment-grade corporates and asset-backed and mortgage-backed
securities.
Core plus
The core plus strategy combines sectors used in the core strategy with
high-yield, emerging markets and non-dollar bonds. These additional sectors
play an integral role in providing the opportunity for higher returns
in the fixed-income market. They are used opportunistically as market
conditions warrant and may represent as little as zero percent of the
portfolio, but a more typical allocation is in the 10-20 percent range.
This strategy has grown steadily over the past several years, spurred
by advancements in information technology, which have increased transparency
and trading efficiencies in these sectors.
More information on Payden & Rygel's fixed-income,
equity and balanced
investment strategies.
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