Unconstrained Strategies
Absolute Return Strategy
The Payden Absolute Return Investing (PARI) Strategy seeks to generate consistent, risk-adjusted returns above cash with low correlation to traditional fixed income benchmarks. Managed without reference to a benchmark, the strategy employs a flexible, globally diversified approach to navigate changing macroeconomic and market conditions.
PARI allocates dynamically across global fixed income sectors, including investment-grade and high-yield corporates, securitized assets, hard-currency sovereign and local emerging market debt, and global currencies. The flexible mandate allows the team to emphasize capital preservation during periods of market stress while participating in upside during more constructive environments.
The strategy is designed for investors seeking a benchmark-agnostic, income-oriented allocation that complements traditional fixed income exposures and adapts to shifting interest rate, credit, and currency cycles.
Flexible, benchmark-agnostic strategy built to seek consistent returns and minimize drawdowns across market environments
Diversified global fixed income exposure across public markets, including investment grade and high yield corporates, securitized assets, emerging and developed government bonds, as well as interest rates and currencies
Risk-aware process with dynamic asset allocation and macro-informed hedging to protect and compound capital over time
Where Philosophy Meets Practice
PARI is founded on the belief that successful fixed income investing is defined by absolute return generation and disciplined risk management, not relative performance against a benchmark. The strategy seeks to deliver consistent returns above cash through active allocation across global credit, rates, and currency markets.
Our process integrates top-down macro perspectives with bottom-up sector expertise to identify opportunities where market pricing diverges from underlying fundamentals. We believe inefficiencies often arise from behavioral biases, regulatory constraints, and liquidity dynamics, particularly in credit markets, and seek to capture them through deep research, patient capital, and a disciplined risk framework.
Portfolio construction emphasizes diversification across risk factors, geographies, and markets. Each position is evaluated through scenario analysis and stress testing to ensure it contributes to the portfolio’s resilience and return objectives. The result is a flexible, globally diversified portfolio designed to preserve capital, capture asymmetric opportunities, and generate consistent outcomes across market cycles.
Multi-Asset Credit Strategy
The Payden Multi-Asset Credit Strategy seeks to deliver attractive risk-adjusted returns through active allocation across global credit markets. The strategy invests across a broad universe of spread sectors, including high-yield corporates, emerging market debt, securitized credit, and other credit assets, allowing the portfolio to capture income and capital appreciation opportunities across market cycles.
By dynamically allocating among credit sectors, the strategy seeks to exploit relative value opportunities as market conditions evolve. Positioned to complement traditional fixed income or high yield allocations, it offers broader diversification and greater flexibility than single-sector approaches.
Limited duration helps contain interest rate sensitivity, while tactical hedging and sector rotation provide tools to navigate changing credit environments. The result is a flexible, benchmark-agnostic portfolio designed to enhance total return potential within institutional portfolios.
Flexible, benchmark-agnostic strategy seeking high-yield-type returns across market environments
Diversified global fixed income exposure across public markets, including high yield corporates, bank loans, securitized assets, emerging and developed government bonds, and global interest rates and currencies
Dynamic asset allocation across sectors and markets, supported by hedging and tactical positioning to navigate changing market conditions
Where Philosophy Meets Practice
The Payden Multi-Asset Credit Strategy is grounded in the belief that credit markets are dynamic and that disciplined allocation across sectors is essential to capturing income and total return opportunities while managing risk. The strategy seeks to generate income and capital appreciation through active allocation across global credit markets while maintaining resilience across changing market environments.
The process begins with a top-down assessment of macroeconomic conditions, including growth, inflation, and policy trends, that inform sector positioning. Credit markets are then evaluated on relative value, liquidity, and expected risk-return characteristics. Bottom-up insights from Payden’s sector specialists across corporate credit, securitized assets, and emerging markets help identify opportunities where market pricing diverges from underlying fundamentals.
Portfolio construction centers on actively managing the portfolio’s risk “center of gravity” through dynamic sector allocation and tactical positioning. Hedging and tail-risk strategies complement core exposures, helping to manage drawdowns while maintaining participation in favorable credit environments. The result is a flexible, diversified portfolio designed to capture opportunities across global credit markets while maintaining stability across market cycles.
Explore more of our strategies
Fixed Income Strategies
Fixed income strategies focused on global bond markets, supported by research-driven analysis and active risk management.
Equity Income Strategy
An equity strategy designed for risk-focused investors seeking income and long-term price appreciation.
Discover what’s possible
See how our investment approach supports your objectives across market cycles.
Investment in foreign securities entails certain risks from investing in domestic securities, including changes in exchange rates, political changes, differences in reporting standards, and, for emerging market securities, higher volatility. Investing in high-yield securities entails certain risks from investing in investment grade securities, including higher volatility, greater credit risk, and the issues’ more speculative nature. The value of fixed income portfolios will rise and fall due to changes in interest rates and other economic factors. Investment portfolios could lose principal.