For each client we set parameters of diversification, duration, quality, and maturity.  Using our forecasts of shifts in the yield curve and on spreads among asset classes we select individual securities, which may range from U.S. Treasuries, to asset-backed issues, to split-rated or high-yield corporate bonds.  We also utilize preferred issues, and other high-yielding vehicles. 

We purchase municipal bonds for those clients who can benefit from the tax advantages, usually with maturities in the five-to-ten year range.  For those portfolios, generally a “buy and hold” approach is appropriate since the cost of trading small quantities of municipals exceeds the benefits.  Frequently we use bond surrogates, such as preferred stocks, as part of our bond strategy.


For our larger tax-exempt institutional accounts we take an active approach.  

Our primary strategies include:

  • anticipating changes in rates by shortening maturities when we expect rates to rise or, conversely, lengthening when rates are likely to fall

  • selecting securities whose yields-to-maturity are attractive relative to U.S. Treasuries with similar maturities

  • taking advantage of opportunities to purchase securities that are candidates for rating upgrades

  • tracking spreads among sectors to emphasize those sectors that are undervalued relative to other sectors