Full Discretion

Core Plus Fixed Income & Core Plus Full Discretion Strategy Highlights

The Relative Return and Full Discretion teams both utilize a credit cycle framework and input from Loomis Sayles research analysts, including credit, securitized and macro, to help inform their respective investment decisions; however, their processes are distinct, resulting in differentiated performance objectives and outcomes. 

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.

Liability Management Exercises: Looking Beyond the Headlines

The increasing complexity and volume of liability management exercises in today’s market present both challenges and opportunities. Portfolio Manager Peter Sheehan breaks down some key considerations for investors. 

Extra Credit: 'EV’ is the Future, and We Don't Mean Electric Vehicles

31 December 2024

When it comes to portfolio construction, the Full Discretion team has long employed a combination of bottom-up security selection and top-down, macroeconomic analysis. We utilize a credit cycle framework to evaluate the factors driving the cycle, anticipate broad sector mispricings and seek to take advantage of changes in risk premium at every stage. This process helps us identify the risk drivers we want to emphasize, or seek to avoid, in our portfolios and lays the foundation for our overall risk assessment. Enterprise value is the anchor by which we conduct our bottom-up fundamental analysis.

What are Innovative Ways to Approach Diversified Credit?

Portfolio Manager Brian Kennedy discusses the broad palette of opportunities available to credit investors. 

Are Securitized Assets Playing a Bigger Role in Asset Allocation?

Portfolio Manager Brian Kennedy shares why he thinks the expansion of securitized assets can add diversification and opportunity.

Extra Credit: Cable is Dead? Hardly…

2 August 2024

We often get questions from clients on our view of the cable industry. With so many consumers “cutting the cord” and new competition emerging, many expect a complicated path ahead for the sector. While we agree there appear to be challenges near term, we believe the long-term outlook for the cable industry could be positive. 

Surprises from the First Half of 2024

Several of our fixed income portfolio managers share unexpected developments that have shaped their view of the credit markets. 

Four Signals on Our Radar

Our investors are watching how monetary policy, consumer health, earnings and profits will come together to drive the cycle and asset markets. 

What is the Market Mispricing?

Markets sometimes move away from fundamentals. Our investors key in on areas that may be overemphasized or underappreciated. 

Extra Credit: Spotlight on Full Discretion Engagement

30 June 2024

With respect to Loomis Sayles’ fixed income strategies, our centralized Credit Research Team conducts the majority of the engagements. Additionally, the Full Discretion Team’s dedicated Research Analysts focus on engagements with the companies where we have expressed overweight investment positions or themes. 

Yield Reset Spurs the Return of Multisector Fixed Income

Higher yields have created compelling opportunities across the full universe of fixed income sectors. As a result, we believe investors should rethink their approach to fixed income and broaden their risk factor exposure. 

Bank Loans: Looking Beyond Interest Rate Expectations

Investment Director Cheryl Stober outlines the potential advantages and risks of bank loan investing and the roles that a bank loan allocation can play in a fixed income portfolio. 

Asset TV Fixed Income Masterclass:
FOMO in Credit Markets

How are corporate fundamentals, demand technicals and discount dollar prices playing out in the investment grade bond market? Portfolio Manager Brian Kennedy weighs in.  

Bank Loans Outlook: On Firm Footing

Investment Director Cheryl Stober shares her team's expectations for defaults, supply/demand technicals and bank loan return potential in 2024. 

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.

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. 

Matt Eagan's LinkedIn Articles

Explore the deep-dive articles written by Matt Eagan on LinkedIn.

“Covenant-Lite” Loans:
Credit Quality Is Still the Dominant Factor