Overview
INVESTMENT PHILOSOPHY PROCESS
Washington Capital believes that limiting high yield exposure to the two highest rating categories offers the best potential to provide investors with superior risk-adjusted returns relative to the entire high yield universe.
WaCap’s High Yield Fixed Income strategy seeks to provide investors access to the below-investment grade fixed income market via a well-diversified portfolio of bonds. Higher yielding securities rated in the BB or B categories are chosen for their yield, potential for credit improvement and favorable total-return characteristics.
In coordination with our fixed income team, we combine a top-down macro overlay with rigorous bottom-up fundamental analysis in constructing client portfolios. We seek to identify specific drivers of credit quality improvement in the investment decision process. Rigorous fundamental analysis of company financial statements, management assessment and history, as well as industry analysis go into each investment decision. WaCap’s proprietary relative valuation modeling process helps identify potential candidates for purchase. All securities are continuously monitored along credit quality and valuation metrics, and the entire portfolio is reviewed extensively by the entire fixed income team monthly.
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 limiting high yield exposure to the two highest rating categories offers the best potential to provide investors with superior risk-adjusted returns relative to the entire high yield universe.
WaCap’s High Yield Fixed Income strategy seeks to provide investors access to the below-investment grade fixed income market via a well-diversified portfolio of bonds. Higher yielding securities rated in the BB or B categories are chosen for their yield, potential for credit improvement and favorable total-return characteristics.
In coordination with our fixed income team, we combine a top-down macro overlay with rigorous bottom-up fundamental analysis in constructing client portfolios. We seek to identify specific drivers of credit quality improvement in the investment decision process. Rigorous fundamental analysis of company financial statements, management assessment and history, as well as industry analysis go into each investment decision. WaCap’s proprietary relative valuation modeling process helps identify potential candidates for purchase. All securities are continuously monitored along credit quality and valuation metrics, and the entire portfolio is reviewed extensively by the entire fixed income team monthly.
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
From a universe of eligible securities rated below investment grade by at least one rating agency, we seek candidates for their yield and total return potential. A review of the candidate from both credit fundamental and valuation perspectives determines suitability for inclusion in the portfolio. Once a bond is included in the portfolio, it is subject to rigorous, continual monitoring and assessment.
From a universe of eligible securities rated below investment grade by at least one rating agency, we seek candidates for their yield and total return potential. A review of the candidate from both credit fundamental and valuation perspectives determines suitability for inclusion in the portfolio. Once a bond is included in the portfolio, it is subject to rigorous, continual monitoring and assessment.
Getting Started
Prospective investors can contact Washington Capital by selecting the link below.