Our fundamental premise for bonds is that our clients want to get paid what they are due. We focus on higher quality fixed income issuers and avoid low quality, even if the latter offers attractive yields.
We often use exchange traded funds (“ETFs”) for clients who hold fixed income. ETFs offer advantages to private investors: low trading costs, diversification, and the ability to tailor a strategy in different types of fixed income, such as corporate bonds, government bonds, preferred shares, etc.
For clients who have specific future cash needs, we may purchase bonds with staggered maturities, also known as a “ladder”.