At Babson Capital, our fixed income team takes an in-depth, bottom-up credit analysis approach to investing. Our fixed income team manages over $60 billion in public fixed income assets.
We seek to earn consistent above-average risk-adjusted returns through research-intensive issue selection and active sector rotation while being duration neutral to the benchmark. Investments are chosen from a large, well-defined universe including, but not limited to:
- Corporates
- Mortgage-backeds
- Asset-backeds
- Agencies
- Treasuries
- Commercial Mortgage-backeds
When constructing portfolios we look for the following attributes in our investments:
- The security satisfies the portfolio's risk tolerance
- Our independent research indicates the investment to be sound, and
- Relative value assessment deems the security to be appropriately, or cheaply, priced.
Additionally, we maintain tight risk controls in every facet of the portfolio management process. We do not time interest rates, thus reducing portfolio volatility, and maintain a high average portfolio credit quality. Furthermore, risk is reduced through thorough analytical work. Duration, sector and issuer exposure, yield curve positioning, and credit quality are monitored daily.