In fixed income, over the long run, yield drives total return. In municipal bonds that yield may carry additional tax-efficiency benefits. This high yield municipal bond strategy, available in a separately managed account (SMA), is designed to achieve strong long term total returns derived primarily, if not entirely, from the income produced by the securities held in a given portfolio, much like how the S&P 500’s long term total return has been materially attributed to reinvested dividend income.
The foundation of the process by which portfolios are constructed is an intensive, comprehensive reliance on bottom-up credit analysis. We take the time and make the effort to understand not just the basic profile of a given credit, but also its risk profile, and what remedies are available to us as lenders in the event something goes awry. Subsequently, specific security selection analysis is conducted on a strict relative value basis. This step is critical in an over-the-counter environment such as the municipal bond market. We are not taking risk indiscriminately. We’re striving to adequately compensate shareholders for the risk we take, in a marketplace that affords the professional manager ample opportunities to exploit inefficiencies inherent to that market.
Our aim with this approach is to build portfolios that provide above-market yields so to justify the risk (absolute and relative) represented in the credits behind the securities we select for inclusion.
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Market Overview At the end of the second quarter over 54% of Americans had received at least one dose of the vaccine, although the pace of vaccinations slowed substantially. New cases and deaths fell to levels last seen in the early days of the Pandemic, but the U.S....
Market Overview At the end of the second quarter over 54% of Americans had received at least one dose of the vaccine, although the pace of vaccinations slowed substantially. New cases and deaths fell to levels last seen in the early days of the Pandemic, but the U.S....
Market Overview At the end of the second quarter over 54% of Americans had received at least one dose of the vaccine, although the pace of...
Yahoo Finance recently announced that Troy Willis, J.D., CFA has joined Principal Street Partners as the firm’s new Chief Investment Officer of...
Before we delve into Infrastructure PLUS’s 2020 performance, we would like to take a moment to thank all our early investors. Our strategy was...
Principal Street Partners, the $1.6B asset manager with a focus on municipal bond investment opportunities, has announced Troy Willis, J.D., CFA as...
As municipal bond managers for over 30 years, we have seen many markets. We can say with high level of conviction that we have never been more...
