Preservation of Capital
Cincinnati Asset Management is a boutique, fixed income manager specializing in U.S. Corporate Bonds. Established in 1989 to build and manage high performance fixed income portfolios for individuals and institutions, our conservative and disciplined approach stresses preservation of capital, diversification, and high investment income. We have specialized in the management of corporate fixed income securities for our clients for over 30 years. We are an independent investment adviser registered with the SEC and structured as a corporation that is employee owned. The strength of our Firm lies with our niche focus, commitment to our investment process and depth of experience of our Portfolio Teams, Managing Directors and employees.
Recent Insight
CAM High Yield Weekly Insights
(Bloomberg) High Yield Market Highlights The US junk bond rally hit a pause as yields crossed the 7% mark to close at a three-week high of 7.04%, after rising for four sessions, the longest streak since early April. Spreads closed at a two-week high of 287 basis points after climbing eight basis points in […]
CAM High Yield Weekly Insights
(Bloomberg) High Yield Market Highlights US junk bond rally momentum faded, halting a three-day winning streak, after inflation data made a September rate cut slightly less of a sure thing. US wholesale inflation rose the most in three years, suggesting that higher input costs, as reflected in the producer price index, could show […]
CAM High Yield Weekly Insights
(Bloomberg) High Yield Market Highlights US junk bonds gained for a third straight month in July, the longest gaining streak since September, on signs of broad economic resilience and strong corporate earnings. The rally was propelled by CCCs, the riskiest tier of the high-yield market. CCCs bonds delivered 1.47% return in July, the […]
CAM Investment Grade Weekly Insights
Credit spreads finished the week unchanged through Thursday, though the market was 3-4 basis points wider Friday afternoon. The move wider came in sympathy with sharply lower Treasury yields following a weak payroll report on Friday morning. The OAS on the Corporate Index closed at 76 on Thursday evening. The 10yr Treasury yield was little […]
CAM High Yield Weekly Insights
(Bloomberg) High Yield Market Highlights US junk bond yields plunged to a new six-month low and spreads still hovered near a more than three-month low driving supply to nearly $33 billion in June, the busiest month for new bonds sales since September. Yields fell 21 basis points in four sessions and declined for […]
CAM Investment Grade Weekly Insights
Credit spreads were mostly unchanged this week through Thursday, sitting very near cyclical tights. Technically, the OAS for the US Corporate Bond Index was 1bp wider on the week through Thursday. The index has traded in a tight 5bp range of 84-89 since the final trading days of May. The tone is stable Friday morning […]
CAM High Yield Weekly Insights
(Bloomberg) High Yield Market Highlights US junk bond yields held steady, with spreads still at a three-year low fueling a wave of new bond sales to push June’s tally to nearly $22b. That’s already 23% more than the full month of June 2024 and up almost 70% on June 2023. The market awaits […]
CAM Investment Grade Weekly Insights
Credit spreads were unchanged this week through Wednesday, while the capital markets were closed on Thursday in observance of Juneteenth. The tone is little changed this Friday morning as we go to print with the US Corporate Bond Index wrapped around a spread (OAS) of 85. The 10yr Treasury yield moved slightly higher this week […]
CAM High Yield Weekly Insights
(Bloomberg) High Yield Market Highlights US junk bonds may snap a 13-day gaining streak after Israel’s strikes on Iran’s nuclear sites sparked a flight to haven assets, including US Treasuries and gold. US equity futures retreated as investors await Iran’s response amid concern the conflict could widen. US junk bond yields held steady […]
CAM Investment Grade Weekly Insights
Credit spreads were slightly tighter this week through Thursday but tensions are high this Friday morning as the market processes recent developments in the Middle East. The US Corporate Bond Index closed last week at 85 and it was at 84 when the market closed this Thursday. The market is generically 1-2 bps wider Friday […]
Clients
Individuals
Individual investors benefit from the same disciplined approach we apply to the management of portfolios of our institutional clients. We buy/sell securities in institutional size that typically is more efficient than smaller retail purchases. The individual investor participates in these larger trades and enjoys the same pricing that the institutional client receives.
Institutional
We focus on the needs of institutional clients, including pension plans, endowments, charitable organizations, and insurance companies. Our strategic investment philosophy, rather than a tactical trading approach, assures that the longer term requirements of these institutions are being met through disciplined investing. We are also able to tailor a portfolio to meet specific investment objectives.
Approach
Our investment process concentrates in the U.S. Corporate Bond market and offers solutions to investors which span the entire spectrum of credit quality from Investment Grade to High Yield. In all cases fundamental credit research is a primary element of our portfolio management process. Our approach stresses preservation of capital, diversification and high investment income.
CAM follows a conservative “bottom-up value” investment discipline that seeks out companies that are currently out of favor with investors, but poised to improve. The primary focus is preservation of capital with a secondary, but extremely important, emphasis on total return. Our portfolios are not managed to a benchmark from a portfolio construction perspective, but do look to outperform respective benchmarks over a full market cycle with less volatility. We do not utilize interest rate anticipation tactics. We look to minimize the impact of macro-economic factors, such as interest rate risk, from the investment process by employing defensive maturity structure within the portfolio
Research
View our research materials, like white papers and yield-spread analysis, as well as our weekly insight.
Investment Solutions
High Yield
For investors seeking potentially greater returns, this strategy focuses on bonds rated in the top two rating categories (BA & B). Securities rated CAA and lower are not eligible for purchase.
Investment Grade
Designed for the more conservative investor interested in an intermediate, investment grade corporate strategy that provides a premium yield to Treasury securities.
Short Duration
For investors interested in a shorter maturity profile which targets an allocation of 50% Investment Grade and 50% High Yield securities in one portfolio.
Broad Market
Combines the Investment Grade and High Yield strategies in an approximate 2/3 – 1/3 blend. It is designed for the investor who desires to achieve greater returns than the Investment Grade strategy while incurring less volatility than the High Yield strategy.
Short Duration : Investment Grade
Designed for investors interested in a shorter maturity profile but do not wish to hold any non-investment grade securities. The average maturity of the portfolio, once seasoned, is less than half of that of our core Investment Grade strategy.
CAMBX
The CAM Broad Market Strategic Income Fund provides an opportunity for long-term investors to find a conservative risk/reward balance that focuses on downside protection and total return.