Overview
INVESTMENT PHILOSOPHY PROCESS
Washington Capital believes that spread products offer investors the opportunity to add incremental returns versus government securities over interest rate cycles. As such, our fixed income investment process seeks to add value by overweighting spread product securities.
WaCap’s approach to the management of Limited-Maturity Fixed Income client portfolios seeks to add yield by providing exposure to corporate credits. Credit quality is closely monitored to control risk. All portfolios are managed relative to a client’s specific investment guidelines, objectives and benchmark.
Our fixed income investment process combines top-down macro research with rigorous, bottom-up fundamental analysis in constructing client portfolios. At the macro-level, we evaluate interest rate volatility, identify sectors that are likely to outperform and determine appropriate portfolio duration. Our bottom-up analysis includes performing independent, exhaustive fundamental research and identifying those corporate sectors and issuers which we believe have the potential to offer excellent relative value opportunities.
Investments in credit bonds entail credit risk which is directly related to the borrower and their credit history/credit standing and ability to make their payments. Securities sold before its final maturity might realize a total return that is different from its original yield. Securities are not guaranteed, and you could lose money on your investments. We work with our clients to understand their tolerance for risk.
Overview
INVESTMENT PHILOSOPHY PROCESS
Washington Capital believes that spread products offer investors the opportunity to add incremental returns versus government securities over interest rate cycles. As such, our fixed income investment process seeks to add value by overweighting spread product securities.
WaCap’s approach to the management of Limited-Maturity Fixed Income client portfolios seeks to add yield by providing exposure to corporate credits. Credit quality is closely monitored to control risk. All portfolios are managed relative to a client’s specific investment guidelines, objectives and benchmark.
Our fixed income investment process combines top-down macro research with rigorous, bottom-up fundamental analysis in constructing client portfolios. At the macro-level, we evaluate interest rate volatility, identify sectors that are likely to outperform and determine appropriate portfolio duration. Our bottom-up analysis includes performing independent, exhaustive fundamental research and identifying those corporate sectors and issuers which we believe have the potential to offer excellent relative value opportunities.
Investments in credit bonds entail credit risk which is directly related to the borrower and their credit history/credit standing and ability to make their payments. Securities sold before its final maturity might realize a total return that is different from its original yield. Securities are not guaranteed, and you could lose money on your investments. We work with our clients to understand their tolerance for risk.
CREDIT AND SECURITIZED SECTOR ANALYSIS OVERVIEW
WaCap’s fixed income portfolios are typically overweight in corporate credits. We believe the yield advantage offered by these securities adds incremental returns over interest rate cycles. Our universe of eligible securities begins with those securities that are rated as investment grade by at least one credit rating agency at the time of purchase. WaCap’s corporate security review process is made efficient by the use of proprietary screening models to filter the corporate universe on a number of factors. At the security level, our research process focuses on fundamental research with the goal of identifying superior performers across the maturity and quality spectrum.
Our credit research process begins by filtering the universe of investment grade securities. We utilize multiple screening tools to provide the investment team with immediate and useful information on individual securities and corporate sectors. Once an attractive security is identified by our screening process, it is subjected to rigorous fundamental research. In conducting security research, our investment team considers a number of factors. In addition to evaluating the strength of the company’s financials, business and/or regulatory environment and management team, WaCap’s analysis also carefully reviews the covenants for each bond issuance being considered. Our security-level analysis also includes evaluating how an issue’s spread will be impacted by potential changes in credit rating.
WaCap’s fixed income portfolios are typically overweight in corporate credits. We believe the yield advantage offered by these securities adds incremental returns over interest rate cycles. Our universe of eligible securities begins with those securities that are rated as investment grade by at least one credit rating agency at the time of purchase. WaCap’s corporate security review process is made efficient by the use of proprietary screening models to filter the corporate universe on a number of factors. At the security level, our research process focuses on fundamental research with the goal of identifying superior performers across the maturity and quality spectrum.
Our credit research process begins by filtering the universe of investment grade securities. We utilize multiple screening tools to provide the investment team with immediate and useful information on individual securities and corporate sectors. Once an attractive security is identified by our screening process, it is subjected to rigorous fundamental research. In conducting security research, our investment team considers a number of factors. In addition to evaluating the strength of the company’s financials, business and/or regulatory environment and management team, WaCap’s analysis also carefully reviews the covenants for each bond issuance being considered. Our security-level analysis also includes evaluating how an issue’s spread will be impacted by potential changes in credit rating.
Getting Started
Prospective investors can contact Washington Capital by selecting the link below.