In recent weeks, we have seen a market where cash and liquidity—deemed “cash as trash“ by many—are now well and truly king again. In a market where people cannot sell what they want and are having to sell what they can, and for portfolios and investors that have long understood the optionality that liquidity affords, we are witnessing sector and liquidity differentiation that creates opportunities to deliver true alpha1 by supplying liquidity to high-quality dislocated assets as a means to enhance returns.
1 Alpha is the excess return of a portfolio over its benchmark.
Important Risks: Investing involves risk, including the possible loss of principal. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.