MacKay Shields & MainStay Investments

Global Fixed Income Team

The Global Fixed Income Team manages a number of income-oriented fixed income strategies ranging from traditional portfolios such as core, core plus and credit to more progressive options investing in high yield, emerging markets and unconstrained strategies.

Our experience in managing fixed-income portfolios encompasses most sectors, securities and markets, and also includes asset allocation as a key component in many of our strategies. We seek to achieve attractive risk-adjusted returns by eliminating those risks for which the compensation is insufficient among bonds and across sectors.

A team of more than 20 investment professionals with an average of 20+ years of investment experience work together to manage our global fixed-income strategies and seek to deliver solid investment performance for our clients

Investment Philosophy

The longstanding investment philosophy of our global fixed-income strategies is rooted in our strong beliefs:

  • Our basic tenet is that bonds have limited upside (mature at par) but significant downside potential (default with no recovery).
  • We believe that strong risk-adjusted returns can best be achieved by using a highly disciplined investment approach designed to identify and eliminate any uncompensated risks.
  • Bottom-up research complemented with a top-down macroeconomic overlay can help identify those securities having the most attractive risk/return profiles.
    Market inefficiencies may be exploited by experienced investment professionals with expertise in security selection and analysis.

Investment Process

We manage portfolios using a disciplined process that combines both top-down and bottom-up analysis with rigorous risk management. Our top-down review focuses on important economic underpinnings of the market’s risk cycle and is fueled by our understanding and appreciation for the significance of monetary policy and its impact on capital markets. Our bottom-up analysis feeds continuously into our macro analysis to help identify significant changes in financial market conditions, real economic developments and areas of credit excess.

As part of this review, we analyze a progression of 32 quantitative and qualitative factors to evaluate individual credits, which are historically the largest drivers of our portfolio returns, in order to identify inappropriate or uncompensated risk. Risk management is imbedded throughout our entire process, with a special focus on credit risk, interest rate risk, structure risk and liquidity risk.

Risk Management
MacKay Shields risk management