Two principles guide our fixed-income decisions. First, an opportunity must be attractively positioned on the yield curve as determined through interest rate forecasting, yield curve analysis, and our analysis of trends and change.
Second, it must undergo thorough credit analysis. A quality fixed-income opportunity will have a history of timely payment of principal and interest, show favorable liquidity, and yield and call-protection characteristics. It must be noted that cash management is integral to our fixed-income investment strategies. Client funds that become temporarily unavailable from asset sales or new additions are invested in high-quality, short-term debt instruments with stable current income, safety and liquidity.