Separately Managed Account

1-10 Year Laddered Corporate Bond Portfolio

This portfolio seeks to generate a stream of income from a portfolio of 30 carefully chosen investment-grade corporate bonds. We construct each portfolio like a “ladder” with maturity “rungs,” ranging from 1 to 10 years. Three bonds, or about 10% of the portfolio’s holdings, are expected to mature each year. The principal from each maturing issue gets reinvested in new, typically higher-yielding, 10-year bonds.

Another feature is the relatively stable 5-6 year average maturity of the portfolio, which can help control risk and improve tax efficiency versus higher turnover strategies. We continually monitor holdings with an eye toward maintaining portfolio credit quality objectives.

1-7 Year Laddered Corporate Bond Portfolio

This portfolio seeks to generate a stream of income from a portfolio of 21 carefully chosen investment-grade corporate bonds. We construct each portfolio like a “ladder” with maturity “rungs,” ranging from 1 to 7 years. Three bonds, or about 15% of the portfolio’s holdings, are expected to mature each year. The principal from each maturing issue gets reinvested in new, typically higher-yielding, 7-year bonds.

Another feature is the relatively stable 4-year approximate average maturity of the portfolio, which can help control risk and improve tax efficiency versus higher turnover strategies. We continually monitor holdings with an eye toward maintaining portfolio credit quality objectives.


The Case for Laddering Bonds

PDF After an extended period of historically low interest rates, income-focused bond investors have finally found relief as interest rates have risen to levels not seen since late 2007 (see Chart

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Municipal Bond Primer

This “primer” on Municipal Bonds is part of our education series for fixed income investors. In this first edition publication, we cover several concepts key to understanding the basics and

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Q3 2021 Tactical Asset Allocation

Key Points: U.S. Leads the WayPolicy Supports Remain Despite ReboundForeign Economies Lag RecoveryRates Move to New Lower GroundTactical Focus: Domestic and High Quality As the economy reopens, we believe growth is set

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To The Bone

Interest rates on bonds are at very low levels. The decline in the United States rates follows those of other sovereigns like Germany, the United Kingdom, and Japan (Chart A,

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 Please see important Disclosures.