Taxable Fixed Income 3rd Quarter Commentary

This commentary reviews the previous quarter and discusses our outlook and investment approach for the coming months.

Commentary Highlights

• Recent years have been littered by crises that threatened to undo the post Great Recession recovery. This parade of crises has sustained accommodative central bank policies, low rates, and investors’ search for yield.

• We believe that central planners at central banks will control the trading range in developed market sovereign debt, and in this environment there may be volatility – but in a narrow band.

• While our strategy is structured to benefit from a gradually improving economy, we are monitoring risks to our outlook both at home and abroad. US elections, Britain’s departure from the EU and fears about the strength of global banks may introduce volatility. We are prepared to rebalance as needed to deliver clients the benefits of quality fixed income as an asset class.

• Corporate Credit Features: Financials, Energy, Media, corporate bond M&A Relative Value Features: Central Bank policy, Technicals vs. Credit Fundamentals, lower quality bond outperformance

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