Because of the structure of the strategy, investors have access to a broad variety of reward vehicles and risk vehicles. Want only AA-grade credit and above, combined with upside exposure to consumer staples? Done. Want BAA+ with short exposure to energy? Done. Want credit maturity less than 5 years due to future liquidity needs? Done.
Because of our direct access to many major bond dealers, we can source liquidity and model scenarios for a potential portfolio mix BEFORE executing orders. This allows us to dial in and fine tune risk before pulling triggers. We do not use bond funds or funds of funds for our bond purchases except in rare cases as designated by the client. We buy direct from dealers and avoid the overhead associated with typical bond buying.