Fixed Income

We believe the quality and stability of our fixed income team stands out as does the discipline with which we have applied our investment philosophy since the firm’s founding in 1990. Fort Washington has worked diligently to build a tenured and cohesive team of investment professionals who have an average of over 20 years of experience to manage your institutional and individual investment needs. Our fixed income philosophy is applied via a rigorous, fundamentally based research process by a deeply experienced team whose creativity and collaboration facilitate competitive, repeatable results.

Active Corporate Fixed Income

Seeks to outperform the Bloomberg U.S. Credit Index through a relative value orientation, which considers fundamental credit analysis as well as sector, quality, and yield curve placement

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Core Fixed Income

Seeks to outperform the Bloomberg U.S. Aggregate over a full market cycle by covering the global fixed income universe while tactically adjusting risk exposure within a relative value framework

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Core Plus Fixed Income

Seeks to outperform the Bloomberg U.S. Aggregate over a full market cycle by covering the global fixed income universe while tactically adjusting risk exposure within a relative value framework

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Emerging Markets Debt

Seeks to outperform the JP Morgan EMBI Global Diversified benchmark by 100 to 150 basis points gross of fees on an annualized basis over the course of a market cycle

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High Yield Fixed Income

Seeks to outperform over a full market cycle by protecting principal in periods of market decline while providing a stable base of income across all periods

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Intermediate Fixed Income

Seeks to outperform the Bloomberg Intermediate Aggregate over a full market cycle by covering the global fixed income universe while tactically adjusting risk exposure within a relative value framework

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Securitized Total Return

Emphasizes moderate risk opportunities in non-index sectors; management employs a fundamental, relative-value approach that seeks alpha by strategically allocating between two sources: sector allocation and security selection

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Strategic Income

Seeks a high level of current income with a focus on capital preservation by investing primarily in income producing fixed income securities

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Structured Opportunities

Emphasizes moderate to higher risk opportunities within securitized products; management employs a fundamental, relative-value approach that seeks alpha by strategically allocating between two sources: sector allocation and security selection

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Ultra Short Duration

Seeks maximum total return consistent with the preservation of capital; interest rate risk is managed by maintaining an effective duration of one year or less under normal market conditions

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Fixed Income Insights

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Managing Risk the Fort Washington Way
A comprehensive risk management framework is at the heart of our investment philosophy. This article explores the principles and the values that drive Fort Washington’s belief that the measurement of risk and return, not forecasting, should drive investment decisions.

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Risk Budgeting Applied to Fixed Income
At the core of Fort Washington's risk management framework is the use of a risk budget. Our risk budgeting process is made more efficient and consistent through our measure of credit risk, Index Equivalent Spread Duration.

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Enhancing Risk Management With IESD
The significance of risk management at Fort Washington drove the development of our proprietary credit risk metric, Index Equivalent Spread Duration (IESD). This piece explores how Fort Washington integrates IESD into its risk management framework to enhance portfolio performance and mitigate credit risk effectively.

An Innovative Approach to Measuring Spread Risk
Index Equivalent Spread Duration adjusts for two effects not addressed by spread duration—the tendency of riskier bonds to experience larger spread moves and the tendency of short maturity bonds to demonstrate more spread volatility than long maturity bonds. This piece explores how Fort Washington captures these effects by applying a spread and maturity beta to a bond’s spread duration.

Finding Opportunity in Securitized Products
Securitized markets have matured notably in the last 10 to 15 years and may offer attractive yields and diversification. This paper outlines the evolution of Securitized Products and how investors may benefit from allocating to the growing asset class.

Quick Take: Q1 2024 Mid-Quarter Fixed Income Update
Given the fluctuations in fixed income markets this year, Fort Washington anticipates that security selection will play a major role in generating alpha, as credit spreads are expected to remain range-bound and tight across most sectors. This article delves into the firm’s perspective and describes its strategy for positioning its fixed income portfolios.

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Fixed Income

Fixed Income Insights

The Yield Curve's Streak of Forecasting Recessions Might Be Over

What Is Securitized Fixed Income?

Non-Traditional Fixed Income Opportunities

Introduction to Strategic Income

Fixed Income Team Credits Creativity & Collaboration as Driving Factors of Competitive Results

Multi-Asset Portfolio Management: Combining Prudent Investing With Timely Execution

Customized Liquidity Management Solutions

Solving the Yield Puzzle

Cash Levels are Rising, and Rates are Falling—Are You Optimizing Your Liquidity?

Why Active Fixed Income Wins Over Time

Emerging Markets: Looking for Opportunity Beyond the Headlines

The Follies of Forecasting

Episode 01, Credit Fundamentals

Subprime Auto Asset-Backed Securities

Municipal Market Update (Part 2)

Finding Opportunity in Securitized Products

Quick Take: Q1 2024 Mid-Quarter Fixed Income Update