We have a legacy of independent thinking and leaning into the market when others may be pulling away. We take a deep-value, equity-like approach to credit selection across global fixed income markets. Our disciplined process helps gives us confidence in seeking to identify macro trends, formulate a clear view on market sectors, and invest throughout the credit cycle.
For more than 40 years, we have been applying our distinctive style of bond picking to deliver portfolios designed to provide excess yield potential and have low correlations to traditional benchmark-focused fixed income strategies.
The Full Discretion Approach to Credit Selection
During our decades as bond investors, we’ve managed through all sorts of credit conditions. And we have consistently observed that the market is inefficient at pricing-specific risk.
We use repeatable credit selection strategies to capitalize on this persistent inefficiency and drive excess return potential.
The Majority of Rate Pressure Appears Behind Us But Inflation Remains Sticky
The market has moved significantly over the course of 2022 and is currently pricing in a policy rate of 4.75-5.00%. We are edging to the point where we believe many of the hikes (priced in) are behind us, at least for this stage of the cycle. Additionally, the probability of a mild recession has risen.
Quarterly Credit Update
The Credit Cycle has been clinging to ‘Late Cycle’ with the probability of a ‘Downturn’ moving higher due to tightening
financial conditions. US Credit risk premiums currently appear attractive with low expected credit losses, but catalysts for
near term spread tightening appear unlikely given a fast moving Fed intent on reigning in inflation. With that said, risk
premiums increasingly appear to offer cushion for the losses that we would expect in the event of a ‘Downturn’.
Full Discretion Team
Range of Institutional Strategies and Mutual Funds
The Loomis Sayles Full Discretion team were among those who pioneered multisector investing with a long-term, flexible, benchmark-agnostic approach. The team manages a range of institutional strategies and mutual funds to help meet different investor needs.
Loomis Sayles’ Kennedy On Credit Market Risks & Opportunities
Brian Kennedy, VP, Portfolio Manager joins Keith Black, Ph.D, CAIA, CFA, FDP, Managing Director at RIA Channel to discuss the state of global fixed income markets and what investors can expect headed into 2023.
Rethinking The Fixed Income Playbook For Insurers
The last ten months have shaken the traditional core fixed income playbook. We think it's time to consider a more thoughtful approach to fixed income allocations in insurance portfolios.
Quarterly Credit Update - September 2022
The Credit Cycle has been clinging to ‘Late Cycle’ with the probability of a ‘Downturn’ moving higher due to tightening financial conditions. US Credit risk premiums currently appear attractive with low expected credit losses, but catalysts for near term spread tightening appear unlikely given a fast moving Fed intent on reigning in inflation.
Break Out Of The Box With Loomis Sayles Multisector
Many bond investors are in an uncomfortable
position today. Yields are low, spreads are tight, and durations have extended out. There’s not a lot of cushion for making mistakes. In an environment like this, we do not want to be boxed in by an index.
In Case You Missed It: A Conversation With Full Discretion's Portfolio Managers
On December 9, 2020, Full Discretion portfolio managers Elaine Stokes, Matt Eagan and Brian Kennedy joined Jim Sia, Head of Relationship Management, for a live call with institutional clients and consultants to discuss Dan Fuss’ step back from portfolio management, the deep investment resources of the Full Discretion team, and the team’s outlook going into 2021.
Credit Check: The Full Discretion Approach To Credit Selection
Credit markets are frequently moving. During our decades as bond investors, we’ve seen them frozen during times of crisis, frothy when investors have seemed desperate for yield, and everything in between.
Matt Eagan's LinkedIn Articles
Explore the deep-dive articles written by Matt Eagan on LinkedIn.
A Fixed Income Predicament: The Case For A Flexible, Active Approach
Low Yield Landscape Amid Interest Rate Unknowns Call for Active Bottom-Up Security Selection Through the Credit Cycle.
Meet the Managers
The Full Discretion team is made up of 19 professionals with 18+ years average of investment experience globally.
Explore More of the Full Discretion Team.
Meet the 30 investment professionals whose experience and expertise help drive alpha across Full Discretion strategies
Call it art or call it a philosophy; we consider it to be both. Fundamental research is the cornerstone of everything we do and believe in.
Fred Sweeney, CFA
David Zielinski, CFA
Diversification does not ensure a profit or guarantee against a loss.
Any opinions or forecasts contained herein reflect the current subjective judgments and assumptions of the Full Discretion Team only, and do not necessarily reflect the views of Loomis, Sayles & Company, L.P. This information is subject to change at any time without notice.
Market conditions are extremely fluid and change frequently.
Any investment that has the possibility for profits also has the possibility of losses.
Commodities, interest and derivative trading involves a substantial risk of loss.
Past performance is no guarantee of, and not necessarily indicative of, future results.