Eric Souders discusses Payden & Rygel’s absolute return strategy, emphasizing the preservation of capital and steady returns above cash. This strategy differs from core bond management by not having a benchmark, allowing greater flexibility in asset allocation. The strategy covers various fixed income asset classes, including corporate credit, government bonds, securitized credit, and bank loans. Despite changing economic conditions, the strategy aims to outperform cash returns and is well-suited for an environment of uncertainty and higher volatility. Overall, the strategy offers investors the flexibility to adapt to a changing investment landscape and uncertain economic scenarios.
