Fixed Income Approach

Bonds are used to provide income and stability to client portfolios.

Two fundamental principles apply:

	Interest yields should increase with time to maturity.
	Interest yields should increase to compensate for other risks.

We seek significant yield advantage available through acceptance of modest risk increases.


Our methods are based on understanding and measuring risks of all kinds, emphasizing yield, stability, and value. We continually monitor:

	Credit risk Volatility risk
	Reinvestment risk Sector risk
	Liquidity risk Call risk
	Yield curve risk Political and legal risk

We measure interest rate spreads across maturities and among credit quality ratings.

Yield advantage comes through acceptance of modest risk increases. Comparing present levels to historic data makes reasoned investment decisions possible.