Boston Trust's approach to fixed income investing combines top down economic scenario forecasts with bottom up fundamental research. Using macroeconomic-based quantitative tools, we forecast interest rate changes for a range of possible economic outcomes. These forecasts contribute to portfolio strategies with respect to interest rates and the yield curve. In selecting individual securities, we apply our long-held standards for superior financial quality, appropriate risk, and diversification. Judgments regarding the optimal allocation among different fixed income sectors benefit from both top down and bottom up approaches.
Specific strategies for individual client portfolios, including investing in tax-exempt securities, are developed within the context of client guidelines and objectives.
