- Rising rates: In terms of rising rates and our strategy, Fed policy has anchored short rates and we do not expect this stability to change materially—even with the economy improving. If rates rise steadily over time a short duration portfolio can typically weather headwinds better than longer-duration products.
- Market valuations near pre-pandemic ranges: As 2021 progresses, the portfolio has come full circle in terms of risk positioning—back down to pre-pandemic levels. While we believe there may be potential for spread compression from here, at this point we are favoring liquidity versus investments in overpriced credits.
- Liquidity: Liquidity is an integral part of our investment process. We seek to buy bonds with better liquidity profiles and reduce or eliminate bonds where liquidity may be deteriorating.
ALPS Distributors, Inc. is the distributor of the Natixis Loomis Sayles Short Duration Income ETF. Natixis Distribution, L.P. is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, L.P.
Natixis Distribution, L.P. (fund distributor, member FINRA|SIPC) and Loomis, Sayles & Company, L.P. are affiliated.