The value and strategy of bonds

In our fast-paced, often uncertain market environment, it’s only natural for many investors to seek out vehicles that offer some sense of stability. While no investment is without risk, fixed income products can play an important role in building a well-diversified portfolio designed to minimize volatility.

One area of fixed income in which we possess significant experience is bonds. With more than 40 years of expertise in the bond market, our team can play a vital role in helping you develop a truly customized bond portfolio.

Bonds can serve a wide variety of needs, whether you’re looking for predictable income and principal protection,* or planning to meet future obligations like funding an education or purchasing a home. We primarily work with three major bond types.**

  • Municipal bonds are issued by cities and local governments and can offer tax advantages to those in higher tax brackets.
  • Government bonds, like U.S. Treasury bonds, offer timely payment of principal and interest backed by the U.S. government.
  • Corporate bonds issued by U.S. and foreign companies, while accompanied by more risk, can offer higher yields.

As you plan for your unique financial goals, our team can help you integrate bonds into your portfolio in a way that suits your current income needs and falls in line with your long-term objectives. We’ve amassed extensive experience creating, managing and monitoring bond portfolios, and we’re committed to using that expertise for your benefit. Based on your evolving needs and market movements, we’ll carefully select bonds for your portfolio and closely monitor their performance, seeking to maintain returns and suitability over time.

Whether you are looking to learn more about bonds or you are seeking experienced management of your current bond portfolio, we’re here to help you build a sense of well-being through it all.

*If held to maturity, subject to issuer credit risk. The market value of bonds is subject to market fluctuation and may be worth less than the original cost upon redemption (or maturity). Diversification does not ensure a profit or protect against a loss. There is an inverse relationship between interest rate movements and fixed income prices. Generally, when interest rates rise, fixed income prices fall and when interest rates fall, fixed income prices generally rise.

**Municipal bond interest is not subject to federal income tax but may be subject to AMT, state or local taxes. U.S. government bonds are guaranteed by the U.S. government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. International investing involves special risks including currency fluctuations, different financial accounting standards, and possible political and economic volatility. High-yield bonds are not suitable for all investors. The risk of default may increase due to changes in the issuer’s credit quality. Price changes may occur due to changes in interest rates and the liquidity of the bond. When appropriate, these bonds should only comprise a modest portion of your portfolio.