Municipal Bond & Taxable Bond Portfolio

 Management

Both MeadowBrook’s Municipal Bond & Taxable Bond Process incorporates a very disciplined approach, which seeks to provide value while maintaining a high quality, diversified portfolio.

Fixed Income Philosophy

Focus on Unique Client Circumstances

Seek Value

  Maintain Quality 

Each individual’s current and anticipated future tax circumstances will determine the optimal mix of taxable and/or tax free bond securities.

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Construct a portfolio with a maturity targeted for each client: The average maturity for each client’s bond portfolio will be mutually determined and be consistent with customer needs and objectives. 

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Identify sectors/securities offering attractive value by employing historical spread, duration and yield curve analysis.

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Utilize investment grade securities (BAA or better) to build a portfolio with an average quality of at least AA.

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Provide attractive income while limiting volatility over an interest rate cycle.

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Municipal Market Dynamics vs. Taxable Bonds

Rates are impacted more by supply and demand

Current and proposed tax legislation widens and narrows spreads relative to taxable bonds

 Municipals always have an upward sloping yield curve