A conservative strategy with limited duration and zero corporate credit risk
LOS ANGELES, May 22, 2025 (GLOBE NEWSWIRE) — Payden & Rygel is proud to celebrate the 30-year anniversary of the Payden U.S. Government Fund (PYUSX), a bond fund that invests in U.S. Treasuries, government agency debentures and agency mortgage-backed securities with an average portfolio maturity of less than five years.
The Payden U.S. Government was launched in 1995, and provided stable, short-term fixed income exposure in the wake of one of the bond market’s most tumultuous periods. Just a year before, the Fed raised rates six times, causing bond prices to tumble across all sectors and durations. But the Payden team believed in its strategy to provide steady income while avoiding the volatility of longer-maturity bond funds and the credit risk of non-government issuers. Since that time, the fund has weathered good markets and bad, offering investors an opportunity to earn income without the turbulence of the bond market’s riskier sectors.
Today the bond market faces another challenging period, as changing tariff policies roil inflation expectations and the threat of stagflation looms. Gary Greenberg, Director at Payden & Rygel, who oversees the U.S. Government Fund, says that the fund’s focus and approach are especially compelling in this environment.
“Right now, we believe intermediate maturity Treasuries provide attractive yields, and, on top of that, government agency mortgage-backed securities are trading at historically high spreads to Treasuries,” he explains. “Our overweight in agencies will aim to provide additional yield as well as capital appreciation as risk premiums contract.”
He adds that because the fund has no corporate credit risk, it is also well positioned to benefit from prospective Federal Reserve Bank interest rate cuts and provide a safe harbor if a recession ensues.
ABOUT PAYDEN & RYGEL
With $165 billion under management, Payden & Rygel is one of the largest privately-owned global investment advisers focused on the active management of fixed income and equity portfolios. Payden & Rygel provides a full range of investment strategies and solutions to investors around the globe, including Central Banks, Pension Funds, Insurance Companies, Private Banks, and Foundations. Independent and privately-owned, Payden is headquartered in Los Angeles and has offices in Boston, London, and Milan. Visit www.payden.com for more information about Payden’s investment offerings, including US mutual funds and Irish-domiciled funds (subject to investor eligibility).
Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, visit our website at payden.com or call 800 572-9336.
For more information and to obtain a prospectus or summary prospectus, visit payden.com or call 800 572-9336. Before investing, investors should carefully read and consider investment objectives, risks, charges, expenses and other important information about the Fund, which is contained in these documents. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
This material reflects the firm’s current opinion and is subject to change without notice. Sources for the material contained herein are deemed reliable but cannot be guaranteed. This material is for illustrative purposes only and does not constitute investment advice or an offer to sell or buy any security. Past performance is no guarantee of future results.
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