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DoubleLine’s Global Developed Credit team invests in the corporate and sovereign bonds of issuers in developed economies. Security selection is based on fundamental credit research focused on identifying stable-to-improving credits and avoidance of deteriorating credits. Consistent with DoubleLine’s general fixed income solution, the Global Developed Credit Strategy seeks investments with the potential for outperformance based on credit fundamentals and does not sacrifice this quality to chase yield. This disciplined, patient approach historically has delivered competitive returns within strict credit quality and liquidity constraints. Our Global Developed Credit Strategies include: Global Investment Grade, Global High Yield and Floating Rate.
Preservation of capital stands as the prerequisite to maximization of total return. This means that satisfaction of credit and valuation criteria comes before considering the incremental yield of a prospective security. Pursuit of total return is guided by the following principles:
- Long-term reliable income is the major source of corporate bond returns;
- Diversification across industries and issuers is critical to managing idiosyncratic and sector risk;
- Avoiding potential problem credits is just as important as selecting stable or improving credits.
The team utilizes a bottom-up approach to credit analysis encompassing individual issuer credit metrics in conjunction with economic and industry trends. Credit analysts and traders work closely together to value issues based upon credit fundamentals , relative value and market conditions. In this process, credit quality, value and yield spread form an integrated whole.
- Identify stable to improving credits and avoid deteriorating credits based on a rigorous security selection process.
- Initial screens on both new issues and outstanding securities are conducted based on liquidity and suitability for the particular investment strategy.
- Perform comprehensive, independent credit research through extensive data gathering and analysis.
- Prepare detailed reports to facilitate in-depth discussions that lead to buy and sell decisions.
- Each position is evaluated based on its suitability and relationship to the overall portfolio.
- Careful consideration is given to security and industry weights, duration exposure, liquidity requirements and ratings constraints.
- Traders, Analysts, and Portfolio Managers work together to manage information flow, monitor portfolio characteristics and update investment theses.
- Portfolio Managers are responsible for all final buy and sell decisions.