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Investment Strategies: Fixed Income

[ Taxable Fixed Income Strategy ]

We select sectors and individual high quality fixed income securities that are temporarily yielding more than our proprietary valuation models indicate is appropriate given their particular attributes.

Objectives

Our objective is to construct a portfolio in accordance with our client's objectives. We strive to achieve solid risk-adjusted returns over normal market cycles that will deliver returns in excess of relevant bond market benchmarks.

Investment Strategy

  • Use only ultra high quality bonds: U.S. Treasuries, U.S. Agencies and U.S. Agency Mortgage-Backed Securities (MBS)
  • Emphasize stable cash flow structures: control for prepayment/extension risk, avoid volatile derivatives, evaluate MBS issues in terms of Option Adjusted Spread (OAS)
  • Avoid market timing: maintain effective portfolio duration close to that of index
  • Maximize value through intensive quantitative analysis: inter/intra sector selection via relative value trading
  • The M.D. Sass Edge

  • We provide risk-adjusted returns with lower risk and outperform relevant benchmarks
  • We manage the portfolios to protect against defined, quantifiable risks and have experience in the technical mathematics and complexities of Mortgage-Backed Securities.
  • Our fixed income team brings a wealth of experience and seasoning to our function as portfolio managers/traders. This experience, tested and honed over numerous interest rate cycles, has endowed our bond team with an invaluable market perspective.



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