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Our investment approach

Principal Fixed Income has experience that spans all major fixed income sectors and partners with clients to establish standard and custom solutions to achieve personalized objectives. Our globally integrated platform, with specialized teams worldwide and over 100 investment professionals, helps to directly access global fixed income markets and deliver comprehensive investment perspectives.

Our platform’s structure and proprietary investment tools foster cross-sector collaboration amongst sector-specialty teams. This diversity of insight helps each team formulate richer investment theses and make better-informed investment decisions.
 

Informed portfolio decisions from cross-sector collaboration

 

Graphic displaying cross-sector collaboration process

Explore our featured fixed income strategies.

To help you diversify your opportunities, we continually review fixed income markets to identify and offer strategies to meet your objectives.
Core Plus Bond
Seeking to take advantage of relative value opportunities across the fixed income universe through an active, multi-sector approach.
Global High Yield
Emphasizing active security selection across the global high yield investment universe to identify and extract value from market inefficiencies, while limiting downside risk.
Liability Driven Investing (LDI) Solutions
Partnering with clients to develop LDI strategies that focus on allocating to risks that pay, while minimizing uncompensated risks, through a comprehensive suite of LDI capabilities.
Asian High Yield
Emphasizing active security selection and sector rotation across the constantly evolving, inefficient Asian fixed income markets to find potential income while minimizing downside risk.
Managed by  Principal Fixed Income

Our commitment to ESG

When it comes to environmental, social, and governance (ESG) investing, we empower fixed income investors by offering choice, confidence, and flexibility.

Our philosophy is defined by deep fundamental research and disciplined risk management—integrating ESG into our process is a natural extension of what we’ve done. Incorporating ESG research into our Fundamentals, Technicals, Valuations (FTV) framework helps provide guidance for decisions within a portfolio.

  • ESG scores are assigned for each issuer and indicate the analyst's overall assessment of each company’s ESG standing.

  • Our analysts directly engage and raise any concerns about ESG issues, and other fundamental concerns, during direct engagement meetings with corporate management teams.

  • Our flexible investment process allows for multiple ESG construction options, including screening, full ESG integration, and impact/thematic investing.

Get to know our fixed income investment teams.

Our fixed income investment teams have a track record of solving for a wide range of personalized investor objectives.
Principal Alternative Credit

A seasoned investment team with significant credit investment experience across all major industries and market cycles, focused on providing our global investment base access to private credit solutions.

Principal Finisterre

As a specialist emerging market debt manager committed to delivering solutions that can perform in any market condition, the team utilizes a unconstrained, time-tested approach to managing income, volatility, and liquidity.

Principal Morley

Specializes in managing capital preservation strategies and designing customized stable value solutions through a risk-managed, multi-stage construction approach, incorporating a proprietary optimization model.

Post Advisory Group

A value-oriented active manager that specializes in managing high yield bonds, leveraged loans, collateralized loan obligations, and structured credit products, finding high-quality businesses through rigorous bottom-up fundamental credit research with a top-down macro and technical overlay.

Spectrum Asset Management

Extensive experience in managing global preferred and capital securities with a robust fundamental credit research approach, including both top-down and bottom-up analyses that lead to selective and thoughtful portfolio construction.

Get the latest insights.

Fixed income
3 min

Solvency vs. liquidity: Understanding the U.K. Gilt turmoil

Timely insights on the U.K. Gilt turmoil and its impact on LDI strategies.

Expert
Owais Rana
Head of LDI Solutions
Fixed income
5 min

A compelling entry point for MBS

MBS may provide a degree of stability during an overall economic downturn.

Expert
Derek White, Ph.D.
Head of Risk Management, Fixed Income
Fixed income
2 min

Credit spreads: Positioning for potential alpha

Future returns will likely come from alpha, rather than from spread compression, in the year ahead.

Past performance does not guarantee future results.

Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

ESG criteria may present additional advantages or risks and does not protect against market risks or volatility. You should not make any investment assumptions based solely on the information contained herein. There is no assurance that any ESG component in our investing strategy will be successful.

Principal Fixed Income is an investment team within Principal Global Investors.