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US Liquidity and US Short Duration Strategies

The Western Asset US Liquidity and US Short Duration suite of strategies provides solutions for Operating Cash, Core Cash and Strategic Cash needs. These strategies span the liquidity, maturity and risk spectrum from extremely conservative (US Liquidity and US Enhanced Liquidity) to those that combine a conservative base with the intention of generating returns incrementally higher than just cash (US Short Duration Constrained, US Short Duration). Maturities range from extremely short (0-3 months) out to the 1-3 year range for US Short Duration Strategies. Whereas the most conservative strategies will mostly be comprised of US Treasuries and government securities, those further out the risk spectrum may utilize a broader investment set.


    The strategic goal at Western Asset is to add value to client portfolios while adhering to a disciplined risk control process. The Firm’s investment philosophy combines traditional analysis with innovative technology applied to all sectors of the market. Western Asset believes inefficiencies exist in the fixed-income markets and attempts to add incremental value by exploiting these inefficiencies across all eligible market sectors.

    • Concern over Rising Interest Rates. Liquidity and short duration strategies are generally less sensitive to rising rates. As a result, in a rising rate environment, shorter-duration bonds may outperform longer-duration bonds.
    • Liquidity. As the name suggests, liquidity and short duration strategies are generally very liquid, especially those at the very short end of the spectrum.
    • Return Generation. Our liquidity and short duration strategies are managed with the intent of generating incremental return over their benchmarks while appropriately managing risk. At the very short-end we aim to beat cash-like benchmarks such as 3-month US Treasury indices. At the longer-end of the short duration strategy spectrum we can take more risk and aim to generate 75 bps of annualized outperformance versus 1-3 Year US Treasury indices.
For more information, please contact your Client Service Executive or call 1-626-844-9400 or 1-212-601-6000