DoubleLine
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Global Developed Credit

Strategies
DoubleLine's Global Developed Credit team invests in the corporate and sovereign bonds of issuers in developed economies. Security selection is based on fundamental credit research focused on identifying stable-to-improving credits and avoidance of deteriorating credits.  Consistent with DoubleLine's general fixed income solution, the Global Developed Credit Strategy seeks investments with the potential for outperformance based on credit fundamentals and does not sacrifice this quality to chase yield. This disciplined, patient approach historically has delivered competitive returns within strict credit quality and liquidity constraints.

Philosophy
Preservation of capital stands as the prerequisite to maximization of total return. This means that satisfaction of credit and valuation criteria comes before considering the incremental yield of a prospective security.  Pursuit of total return is guided by the following principles:

  • Long-term reliable income is the major source of corporate bond returns;
  • Diversification across industries and issuers is critical to managing idiosyncratic and sector risk;
  • Avoiding potential problem credits is just as important as selecting stable or improving credits.

Process
The team applies a bottom-up approach to credit analysis, encompassing each individual issuer's credit metrics in conjunction with economic and industry trends. Once a security has been vetted on credit fundamentals, the credit analysts and traders work closely together to value the issue given credit fundamentals, the relative value of like securities within the same industry and market conditions. In this process, credit quality, value and yield spread form an integrated whole.

Process

Industry

  • Fundamentals
  • Secular Outlook
  • Cyclicality

Issuer

  • Credit Profile
  • Market Position
  • Liquidity

Management

  • Integrity
  • Continuity
  • Bondholder Focused

Cash Flow

  • Credit Metrics
  • Stable Cash
    Flow from Operations
  • Manageable Refinancing Schedule

Security

  • Relative Value
  • Position in Capital Structure
  • Covenant Protection and Credit Enhancements