Custom Fixed Income

We focus on strategies designed to protect principal against wide interest rate swings and the threat of inflation. Our goal is to help manage risk while providing a dependable income stream. Emphasis is placed on high-quality, income-producing securities, liquidity, diversification, and above-average call protection.

Our investment style is applied to both taxable and tax-free bonds and driven by the most attractive net after-tax returns available. Corporate bonds are used when they represent unique absolute value.

We manage fixed income portfolios proactively with our own internal credit analysis supplemented by various outside credit research sources to help us profit from anticipated ratings upgrades and/or changes in quality perception of certain securities.

Banyan’s efforts in uncovering value in equities through its extensive balance sheet-driven work frequently leads us to superior credits regardless of the stock’s appeal. We may purchase bonds that are below Investment Grade if we are confident in the underlying company’s cash flow generation and its resultant ability to retire debt. We strive to keep these maturities fairly short to further ensure payback.

Characteristics of Fixed Income Portfolio Management

• Appropriate maturity/duration in line with our interest rate outlook.
• Emphasis on quality securities … with an eye toward managing credit risk.
• Extensive credit analysis helps us identify attractive individual bonds and sectors in which to invest.