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| Greg Habeeb |
Calvert Asset Management is putting new cash to work in investment-grade corporate bonds and taking on a defensive posture as the year draws to a close. Greg Habeeb, lead portfolio manager of $3.25 billion in taxable fixed income across six funds, says he is putting money to work in existing allocations and plans to maintain a dominant corporate bond position. Specifically, he is looking to buy cheap, high-quality assets with a single-A rating that are benefiting from the improving economy. For example, Habeeb says he recently purchased $8 million of International Paper bonds in the primary market because he felt was it was attractively priced. He bought 10-year bonds at 120 basis points over Treasuries. The purchase did not affect the 55% his largest fund allocates to high-grade corporates and Habeeb says he has no current plans to alter his exposure and declined to say what other bonds he might add with new cash. Calvert also allocates about 10-12% to high yield bonds, with coupons ranging from 8-15% notes. Overall, the portfolio is neutral corporate exposure and overweight to taxable municipal bonds, which account for the remainder of assets. Habeeb says he does not hold any mortgage-backed securities because he sees the rates market as being too volatile. The portfolio's average duration is 4.5 years, slightly short of its benchmark. Calvert's largest fund, which has $2.4 billion in assets, is run against the Lipper Triple-B Index.
