Fixed Income

Bonds offer a level of precision in liquidity planning that investors often find indispensable and highly valuable. The committed coupon payments and principal reimbursements from issuers contribute a sense of predictability, ensuring the ability to fulfill liquidity requirements in a consistent manner, contingent upon the financial solvency of the issuers.

Anticipating when interest payments will be received is notably advantageous, as it facilitates projection of portfolio returns over a calendar year. Furthermore, having clarity on repayment timelines enables astute planning, such as reallocating capital for new investments or financing significant purchases like a home or a boat.

Many of our clients leverage this structured cash flow to complement or substitute their existing income, while others simply relish the stability and assurance that a guaranteed income stream delivers.

The security inherent in fixed-income securities is equally noteworthy: the issuer bears the responsibility of interest payment and principal repayment, and any failure in these obligations bears significant consequences. If such an event leads to issuer bankruptcy, bondholders gain the ability to assume control of underlying assets in order to recoup a portion of their initial investment.