This excerpt comes from an article titled “Eagle Eyes High-Coupon Callable Corporates” in the January 20, 1992, issue of BondWeek, p. 7:
“If the bond market rallies further, Eagle Asset Management may take profits, trading $8 million of seven-to 10-year Treasuries for high-coupon single-A industrials that are callable in two to four years according to Joseph Blanton, Senior V.P. He thinks a further rally is unlikely, however.
Eagle has already sold seven-to 10-year Treasuries to buy $25 million of high-coupon, single-A nonbank financial credits. It made the move to cut the duration of its $160 million fixed income portfolio from 3.7 to 2.5 years, substantially lower than the 3.3-year duration of its bogey . . . because it thinks the bond rally has run its course. . . .
Blanton said he likes single-A industrials and financials with 9 1/2(10% coupons because these are selling at wide spreads of about 100(150 basis points off Treasuries.”
What types of active portfolio strategies are being pursued by Eagle Asset Management?