|
|
 |
|
The Municipal Bond Advantage Strategy purchases quality municipal bonds that are undervalued versus the benchmark municipal bond scale and trading at a more attractive yield than comparable bonds in the same maturity range.
Our goal is to produce an increased net yield for our clients that is approximately 50% greater than their existing portfolio, financial advisor or bond fund manager is currently producing for them. We also consider buying municipal bonds in a particular state or geographical area that has recently seen an abnormal amount of bonds being sold or offered. Because the supply is greater than the demand, often times we can purchase "tag ends", the bonds remaining in a particular maturity, at a greater yield. This allows the syndicate to close and move to the next deal, saving that firm various additional costs.
For diversification purposes, the portfolio consists of bonds of varying types, purposes, ratings and size. We purchase bonds trading at premiums and discounts, zeroes, kickers, pre-re's, escrowed to maturity, mandatory puts, general obligations and revenue bonds.
Each client's portfolio is a separately managed account tailored to that client's investment objectives. The strategy has significant edge due to the extensive amount of time and research necessary to evaluate these bonds as very few investors and professionals know that these special situations exist.
|
|
