Fixed Income Management

At STMM our process of actively managing fixed income portfolios begins with analyzing the current rate environment to determine the most advantageous position within our investment guidelines. We have a seasoned staff of experienced and knowledgeable fixed income professionals. Once the decision has been made regarding the duration of a portfolio, our team then sources bonds from our extensive network of over 40 dealers. This process allows us to properly diversify portfolios and to ensure competitive prices from our dealers.

  • We believe that most of an investor’s acceptable level of “risk” should be taken in the equity portion of their portfolio. Therefore, we focus on high quality for our fixed income strategy.
  • Our tax-free municipal portfolios focus on general obligation bonds and essential service revenue bonds such as water and sewer bonds and utility bonds; primarily from Texas bonds but often include other US locales while avoiding certain areas of the country that experiencing large budget deficits, declining property values and/or declining populations.
  • The focus of our taxable fixed income portfolios is current investment grade corporate bonds and taxable municipal bonds.
  • A separately managed fixed income account offers professional management, laddered individual bond portfolios, full transparency, and tax efficient management. Holding individual bonds, as opposed to mutual fund shares, allows the bondholder to ride out the volatility in bond prices as interest rates rise, collect income, and wait until maturity to get back to a bond’s principal. Owning individual bonds provides the investor full transparency as opposed to fixed income mutual funds, which may even hold stocks.

Click here to view our fixed income fee schedule

Click here to view the STMM Fixed Income Management & The Current Lower Oil Price Environment article.