Investment Management

Market Insights


Senior Loans: Committed to a Pure Play, Higher Quality Style

By Jeff Bakalar and Dan Norman, Co-Heads Senior Loan Group

The lowest-rated segments of the loan market have driven the recent performance of the index. However, investors seeking to maximize short-term returns by reaching down for yield should proceed with caution - our analysis reveals that there is limited upside to investing in the higher-risk components of the senior loan market. Against an uncertain market backdrop, we remain committed to delivering a dedicated loan style focused on higher-quality, highly-diversified portfolios of senior secured loans.


The U.S. Housing Trade is Far From Over

By Dave Goodson, Head of Securitized Investments, Fixed Income

The U.S. housing market still has meaningful upside. In fact, from several perspectives, we are still in the recovery phase. Against a robust economic backdrop, we believe securitized credit is a compelling way for investors to diversify a broader credit portfolio—yet the potential benefits of the asset class remain broadly misunderstood. In this analysis, we reveal why we believe securitized credit has become a “through-the-cycle” allocation.


Understanding Return of Capital: How It Could Be Beneficial in a Targeted Payment Fund

By Paul Zemsky, CFA Chief Investment Officer, Multi-Asset Strategies

Many investors dislike return of capital (ROC) because they think it is just a return of the original investment minus fees. But sometimes ROC can be favorable to your clients; this Insight can help you determine when.


How Can Public DB Plans Meet the Challenge of Low Interest Rates?

By Pierre Couture, A.S.A., E.A., M.A.A.A. Senior Portfolio Manager

A major concern for many plan sponsors is the lack of improvement in funded status in recent years. What is causing their funded status to barely move? And can plan sponsors do anything to remediate this headwind?


Secondary Private Equity Investments: 4 Key Benefits for Insurance Companies

For insurance companies seeking private equity exposure, secondary funds offer many potential benefits, including reduced blind pool risk, a shortened holding period that mitigates the impact of the J-Curve, potentially lower cost PE exposure and historically attractive return dynamics.


A Holistic Approach to Target Date Design

By Paul Zemsky, CFA Chief Investment Officer, Multi-Asset Strategies

How should Plan Sponsors think about evaluating Target Date Funds? In our new brochure, we offer a comprehensive approach for selecting the fund that best matches the needs and characteristics of the plan and its participants.


Capital Market Assumptions for 2017

By Multi-Asset Strategies and Solutions Team

Our capital market assumptions provide estimates of expected returns, standard deviation of returns and correlations among major U.S. and global asset classes over a ten-year horizon. These estimates guide the strategic asset allocation for our multi-asset portfolios and provide a context for shorter-term economic and financial forecasting. These comments reflect final asset class forecasts of risk and return for 2017-2026 and are subject to change.


Senior Bank Loan 2017 Outlook

By Jeff Bakalar and Dan Norman, Co-Heads Senior Loan Group

Looking ahead to 2017, senior bank loans seem poised for another strong year. In our annual forecast, we break down the factors expected to drive risk and return in the asset class.


What is Credit Risk Transfer?

By Dave Goodson, Head of Securitized Investments, Fixed Income

Learn more about this relatively new and growing fixed income segment.