Fixed Income Investments
Disciplined Selection Process
How We Build Portfolios
Our bond selection process is disciplined, repeatable, and focused on generating a predictable and steady income while preserving capital. We achieve this by investing in bonds that provide regular interest payments and the return of principal at maturity. We look for controlled duration management, yield curve positioning, sector rotation, and credit selection to produce competitive long-term returns. We also consider value analysis of municipal subsectors and bottom-up analysis of individual bonds. Tax considerations, such as a client’s residency, are also essential. The result is a focused portfolio of 40-65 bonds.
Macroeconomic Reasearch
2,000 Bonds
We identify investment themes based on macroeconomic research and analysis. This involves analyzing trends in interest rates, inflation, employment, taxes, gross domestic product, and global and domestic markets. Our goal is to identify fixed-income sectors and industries likely to perform well now.
Bond Selection
40-65 Bonds
We look for bonds that have three common characteristics:
- Duration – The duration of our bond portfolios may be under one year, 1-3 years, 5-7 years, or 7-10+ years.
- Sector – Portfolio sectors may include U.S. treasuries, agency, and corporate bonds within the industrial, financial, and utility sectors.
- Credit – We may hold bonds with credit ratings of Aaa, Aa1-Aa3, A1-A3, Baa1, Baa3, and not rated.
Ongoing Monitoring
Greenwood Capital’s fixed-income investment team monitors and updates portfolios to ensure they align with changing market conditions and your goals.
Market Analysis
We review market trends and economic conditions and analyze their impact on bond sectors and asset classes. We stay current on news and events that could affect the market and securities.
Portfolio Construction
Our investment team monitors individual securities and overall portfolio risk and adjusts as needed to ensure that your portfolio aligns with your risk tolerance and investment goals.
Our bond selection process is disciplined, repeatable, and focused on generating a predictable and steady income while preserving capital.
Idea Generation
Greenwood Capital gets our bond ideas from a variety of qualitative sources and research, including the following:
We draw on our personal experience and expertise to identify investment opportunities.
