Fixed Income

For institutional investors

Parametric’s fixed income solutions provide a customizable, transparent, and rules-based approach to bond portfolios for organizations. A solution exists for every client, and if it doesn’t, we create one.

Fixed income investigated. Our weekly updates will keep you on top of rates, inflation, and much more.

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Institutions need predictable income and the diversification that its holdings provide, especially in an uncertain interest rate environment. Parametric offers comprehensive and flexible fixed income solutions that can be easily tailored to the needs of your organization.

Parametric by the numbers

$608Bn+

Total firm AUM

$176Bn+

Fixed income AUM

Fixed income professionals

As of 6/30/2025

What we offer

We’re a full-service consultative partner to implement portfolio exposures and risk management in a flexible, cost-effective, and timely manner. Portfolios can be benchmark oriented or alpha seeking. They include physical fixed income collateral for large overlay programs, various fixed income derivative implementations, and different factors applications and ESG themes to meet overall portfolio needs.

Ways we apply our expertise

Cash Management
Fixed Income Ladders
Overlay
Municipal/US Treasury Crossover
Responsible Fixed Income
Liability-Driven Investing
Custom Indexing

Core sectors

Investment-grade corporates

We construct portfolios with a rules-based method to minimize risk and create customized laddered, benchmark, and cash-flow-focused strategies.

US municipals

We have a long track record of Muni-Treasury crossover trading for taxable investors, seeking active multisector solutions, and security selection with an expert credit research team.

US governments and derivatives

We create benchmark-based portfolios and laddered exposures with nominal Treasuries, TIPS, and STRIPS.

Explore our fixed income solutions

Why use Parametric’s institutional fixed income solutions?

Collaboration

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You’re supported by, and have access to, our large team of investment professionals, including portfolio managers, strategists, and research analysts, so we can offer collaboration at every level.

Oversight

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Our in-house team of experienced credit analysts do the fundamental research to select securities and provide ongoing monitoring to help you reduce credit risk.

ESG integration

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You can apply the same ESG criteria to your bonds as you do to the stock portion of your portfolio.

Technology

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We use proprietary portfolio construction models and tools to build customized solutions, buy and sell bonds at attractive prices, and carefully manage systematic risk that is unique to your plans.

FI Strategy Overview pdf mockup

Fixed Income strategy overview

Want a deeper dive into Parametric’s Fixed Income Strategy?
Download our strategy overview.

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Frequently asked questions

What’s the best way to maximize the yield from the cash in our overlay plan?

We’ve often found that institutions may benefit from a customized cash or ultrashort SMA solution that has the potential to lower costs and add yield. These cash securities can serve the dual purpose of margin and collateral for overlay clients with derivative exposures, possibly increasing the overlay’s capital efficiency.

What’s the best way to reduce rate risk and preserve funded status when long-term rates rise?

Institutions can use a variety of funded and unfunded instruments that aim to reduce funded status volatility and hedge against interest rate risk. Consider one of our liability-driven investing solutions.

How can we de-risk our portfolio by matching cash flows to a planned schedule?

Consider a portfolio of high-quality corporate bonds that seeks to match maturities and coupon payments with projected liabilities. Our cash-flow-driven investment (CDI) solution may be appropriate.

How should we think about borrowing costs in our plan?

When estimating an asset class’s expected future returns, we typically think in terms of excess return or a risk premium over a short-term interest rate. Excess returns tend not to change when rates rise and fall. Elevated rates by themselves don’t increase borrowing costs, but they can have a perceived effect on return expectations. Visit our Overlay page for more information from our experts.