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.
Fund Flows & Issuance: According to a Wells Fargo report, flows week to date were $0.4 billion and year to date flows stand at -$36.1 billion. New issuance for the week was $1.3 billion and year to date issuance is at $65.2 billion. (Bloomberg) High Yield Market Highlights U.S. junk bonds are headed toward […]
Credit spreads will finish the week meaningfully tighter for the second week in a row. The Bloomberg US Corporate Bond Index closed at 149 two weeks ago and 136 last Friday while the index closed this Thursday at an OAS of 130. Spreads have drifted wider during the trading day on Friday so we may […]
Fund Flows & Issuance: According to a Wells Fargo report, flows week to date were $4.6 billion and year to date flows stand at -$36.6 billion. New issuance for the week was $6.0 billion and year to date issuance is at $63.9 billion. (Bloomberg) High Yield Market Highlights The U.S. junk bond rally is […]
Credit spreads will finish this week markedly better and there were a couple trading days where spreads ripped tighter. The Bloomberg US Corporate Bond Index closed at 149 last Friday which was its widest level of the year. The index closed 13 basis points tighter this Thursday at 136 and the path of least resistance […]
Credit spreads drifted wider this week while major equity indices posted their 7th consecutive week of losses. The OAS on the Bloomberg US Corporate Bond Index closed Friday, the 20th of May at 149 after having closed the week prior at 141. This marked the widest close for the index in 2022. The 10yr Treasury […]
Fund Flows & Issuance: According to a Wells Fargo report, flows week to date were -$1.1 billion and year to date flows stand at -$35.8 billion. New issuance for the week was $1.2 billion and year to date issuance is at $56.9 billion. (Bloomberg) High Yield Market Highlights U.S. junk bonds are headed for the […]
It was another volatile week for risk assets, especially equities. The OAS on the Bloomberg US Corporate Bond Index closed Thursday, the 12th of May at 141 after having closed the week prior at 134. The 10yr Treasury closed the previous week at 3.13% and it is trading at 2.91% as we go to print […]
One word can aptly describe this week: volatile. The OAS on the Bloomberg US Corporate Bond Index closed Thursday, the 5th of May at 134 after having closed the week prior at 135. Although the spread on the index was slightly tighter the performance effect was offset by higher Treasury yields. The 10yr Treasury closed […]
It was an ugly week for risk assets. The OAS on the Bloomberg US Corporate Bond Index closed the week of April 29th at 135 after having closed the week prior at 132. The month of April is one that investors would like to forget; it was historically bad for credit and stocks were down […]
Spreads drifted wider throughout the week and the tape is weak on Friday afternoon for credit and equites as we go to print. The OAS on the Bloomberg US Corporate Bond Index closed at 128 on Thursday, April 21, after having closed the week prior at 121. On Thursday, Federal Reserve Chairman Jerome Powell delivered […]
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.
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.
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
View our research materials, like white papers and yield-spread analysis, as well as our weekly insight.
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.
Designed for the more conservative investor interested in an intermediate, investment grade corporate strategy that provides a premium yield to Treasury securities.
For investors interested in a shorter maturity profile which targets an allocation of 50% Investment Grade and 50% High Yield securities in one portfolio.
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.
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.
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.