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Fixed Income

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When it comes to fixed-income securities, our philosophy is a simple one—no surprises. Fixed-income portfolios are assembled to provide:

  • Predictable current and future income stream
  • Protection from interest rate shock
  • Preservation of capital
  • Lower volatility for the entire portfolio
  • Cash reserves

U.S. Treasuries and U.S. Agencies usually make up the majority of holdings in our fixed-income portfolios. We typically ladder these securities, keeping the longest maturity within 12 years. When corporate bonds are purchased, we emphasize quality and diversification. And, when a bond reaches maturity the proceeds are reinvested according to the client’s needs.

The interest rate environment at a given time is the primary determinant of fixed-income performance. We pay close attention to potential bond-rating changes to mitigate overall portfolio risk. Our main research effort focuses on macro economic forces and their effects on the economy. So when we select fixed-income investments, we focus on current domestic and foreign economic conditions, future outlooks, monetary policies, inflation and trade balances.

Talk to your NBT Financial Group representative today to book an appointment.