Bonds and other Fixed Income Investments
We offer a wide selection of tax free municipal bonds, mortgage-backed securities, brokered Certificates of Deposit, U.S. Treasury and Agency Securities, corporate bonds and hybrid structured products. Our participation in certain syndicate offerings allows us to periodically offer select primary market issues to our clients.
- MUNICIPAL – Interest income is usually exempt from federal income tax, which makes these particularly appealing. They often represent investments in government projects. They are predictable with semi-annual interest payments and they hold a history of excellent credit. Characteristics to be considered by municipal bond holders include investment quality, maturity length, issuer, and the investor’s tax bracket.
- GOVERNMENT/TREASURY – These bonds are comprised of debt securities issued by the US Treasury. They provide the lowest risk in bonds, and pay interest every six months. An investment in these bonds is exempt from local and state tax, but not from federal tax.
- CORPORATE – Issued by industrial, financial and service companies, corporate bonds offer a wide range of choices and risk. There are high risk, high yield bonds as well as fixed rate capital bonds. Since these are higher risk they will most likely have higher interest payouts.
- MORTGAGE BACKED – These are investments created when mortgage providers or banks sell loans to federally sponsored agencies or private institutions. Only those backed through the Government National Mortgage Association are fully backed, others are not under the same obligation. Part of the return on principal is payable to investors on a monthly basis. Liquidity prices are in line with market conditions.