Using our fixed income experience and data-driven monitoring, we apply a highly disciplined approach to credit and interest rate risk management.
We are committed to the employment of effective and appropriate risk-management tools in order to structure efficient portfolios for all types of economic environments and market cycles.
A proven framework is in place to assess risk, enhance monitoring, and make risk-management more efficient. We assess the following risk factors:
Regulatory. Awareness of possible forthcoming changes in government policy and their effects on the securities held in each portfolio is of importance.
Yield Curve. Shifts in the slope and shape of the yield curve are measured and monitored.
Sector. Diversification across sector and issuer is used to mitigate credit risk.
Credit. The credit rating of the portfolio, specific sectors, and individual securities is controlled.
Interest Rate. The degree to which a bond is sensitive to interest rate risk, known as duration, is a key market risk that is constantly managed.
Liquidity. The marketability of each security in the portfolio is analyzed for its ability to offer ongoing liquidity.