Inside This Issue—First Quarter 2009
CMBS: Finding Value in a Volatile Market
Commercial mortgage-backed securities (CMBS) continue to be a core investment component within Dwight-managed strategies. Given recent volatility, it is important to take stock of our holdings and methodology when it comes to trading within the CMBS sector.
Fixed Income Sector Review
After a tumultuous fourth quarter, the corporate bond market began to show some signs of stability in 2009. Investment-grade corporates posted a total return of -1.93% and underperformed duration-matched Treasuries by 21 basis points, ending the quarter at an option-adjusted spread (OAS) of 543 basis points.
Economic Update
The term recession seems inadequate to describe this downturn. Depression seems more appropriate, but historians will tell you that the depressions of the 1920s and 1930s were marked by double-digit declines in real gross national product.
International Bond Market Update
Is it always darkest before dawn? Economies around the globe continued their path of destruction during the first quarter and global policy makers responded by further loosening monetary policy, announcing new fiscal stimulus packages, and warming up the printing presses. Indeed, governments not only sold more family silver, but they also mortgaged the future of coming generations.
Dwight News: Paul Norris Joins Dwight as MBS and ABS Sector Portfolio Manager
Paul Norris joined Dwight’s Investment Team in February. Paul joins Steven Clancy and Peter Milne in managing the mortgage- and asset-backed securities sectors for Dwight’s investment portfolios.
Investment Results as of 3/31/09
[login required]
This information is included in our password-protected area of the site. When you click the link below, you will be prompted
to enter your username and password. Access to this information is limited to persons or entities maintaining an account or
other relationship with Dwight. If you would like to request access to this information, please email us at
info@dwight.com.