Commitment to high credit quality is a critical factor in our fixed income philosophy. Lower quality bonds may offer higher yields, but we believe the incremental return is insufficient to compensate for the additional risk.
Our fixed income portfolios are carefully crafted to provide the greatest level of stability and predictable cash flows to preserve the maximum amount of capital. Each client's portfolio can be designed to satisfy the need for either taxable or tax-exempt income, with an approach that involves:
- Analyzing financial statements to identify cash flows, maturity concentrations and debt interest coverage
- Comparing historic credit spreads among U.S. Treasury, agency, corporate, municipal, mortgage-backed and other asset-backed securities to assess relative value
- Evaluating the credit of issuers, regardless of insurance or rating
- Researching the structures and features of securities
- Taking advantage of inefficiencies along the yield curve while providing for higher cash flow and investment return