Fixed Income Partnership Program
On most trading platforms finding individual bonds of high quality is time consuming and expensive. Our Fixed Income Partnership Program solves this need by managing your fixed income book both in the municipal and taxable bond space, customized to your needs but centered around our Rolling Down the Yield Curve strategy.
Why Oliver Luxxe?
- Focus on Yield Over Briefest Period
- Reduce Client Fees
- Institutional Pricing on Strategies
Achieving income is our primary objective. Secondarily, we seek growth by targeting investments in bonds at the steepest segment of the yield curve, then unloading them at premiums before they mature at par value. Our investment process is informed by the “roll-down theory” of fixed income investing. This unique strategy powerfully defends against down markets.
In Short: We focus on the most dramatic change in yield over the briefest period, optimizing potential for appreciation, and minimizing risk of rising rates.
- Conservative Strategy
- Objective is Largest Yield Differential in the Shortest Time Period
- Sell Bonds Prior to Decay to Par Value
- Buy Individual Bonds at Steepest Segment of Yield Curve
- Bonds Subsequently Sold as they "Roll Down" Yield Curve
- Lower Yield = Higher Bond Price
- Aim is to Sell Bond 3-5 Years from Maturity
- Averts Low Yielding and Less Efficient Front Segment of Yield Curve
We invest primarily in what we perceive as large and liquid issues of premium quality general obligation bonds as well as essential service revenue bonds. Our average rating is AA / AAA throughout our strategies. We offer state-specific, state preferred and national portfolios. Some examples would be NYS GOs or other high grade municipal bonds.
Key Component to Strategy: Own quality "plain vanilla" bonds that traders are comfortable buying and selling frequently [high-demand].
Buying and Selling Power
Capitalizing from block trading, we have the capacity to pool buying power across accounts and trade with efficiency and competitiveness through a negotiated bidding process. We draw upon our multiple Fixed Income resources and our own risk analysis.
Oliver Luxxe's FIPP Team has more than 100 years in combined tenure with Fixed Income focused financial service providers, with two of our members serving as principals in their own firms. We enjoy strong, strategic relationships with numerous banks, brokerage firms, and mutual funds.
In Short: We can offer our clients institutional pricing on our strategies.
Staying firmly ahead of the curve in a fluid economy and complex capital markets goes beyond a full-time job - especially in today's environment. It requires an investor with the time, technical expertise, and analytic resources to attentively manage a competitive fixed income portfolio of investments.
For those who seek to clarify the complexities of day-to-day fixed income portfolio management with an individual manager, Oliver Luxxe provides a uniquely personalized investment service - driven by far-reaching resources and industry experience.
FIPP clients will develop a face-to-face relationship with a Fixed Income Manager who has the wherewithal and experience to conceive and implement a customized investment strategy.