Corporate Bond Portfolios

Recognizing that many clients have significant income needs, we have developed a higher yielding fixed income strategy utilizing only corporate debt securities. These portfolios are comprised primarily of investment grade corporate bonds. These bonds generally outperform Treasury bonds over market cycles. There are, of course, greater credit concerns as the bonds lack the full faith and credit of the government. As a result, a full analysis of each issuing corporation is maintained by our fixed income analyst team to find the most attractive securities that are consistent with modest credit risk.

Portfolio duration is actively adjusted in line with our general posture on the direction of interest rates and strength of the economy. Bonds are selected, in part, on the attractiveness of their yield spread (the yield advantage that a particular bond has over the similar duration Treasury bond). A reduction or tightening of this spread can add meaningfully to the portfolio's performance.