What we believe

BondSavvy challenges the status quo on long-held beliefs to uncover unique corporate bond investment opportunities.

We don’t advocate only investing in bonds we can hold to maturity. We continually evaluate the investment recommendations we have made and advise on whether we recommend no longer owning those bonds and what a better bond may be. For our own portfolio, we have generally held bonds for as short as six months and as long as four-plus years. Investment Holding Periods Since our recommendations are focused on achieving capital appreciation, we often find corporate bond investments that can drive higher after-tax returns than municipal bonds. After-Tax Returns We don’t believe bond funds and ETFs are right for many investors. Not only are their returns often weak, but they defeat the purpose of owning a bond since they do not return your principal at maturity or pay a fixed coupon. Bond funds take the “fixed” out of fixed income. "Fundification" of Investing We don’t see interest rates as the primary driver of bond prices. For many investors, it’s the first and last thing they think about. Not us. We look for compelling investment opportunities at the bond (or CUSIP) level where we have seen bond prices increase even when interest rates have risen. Interest Rates While laddering is a good concept in theory, we believe it can leave a lot of money on the table. If you limit your bond investment selections to only those that mature in specific years, you could be missing out on a great bond that matures in a year without a rung. We evaluate bonds of ALL maturities to find the best investment opportunities. Bond Laddering We are not just coupon clippers. Rather, we seek to maximize total returns by identifying undervalued bonds that can appreciate in value. Many of our investments to date have achieved returns greater than those of the stock market. Returns Objectives The over-diversification provided by large bond funds and ETFs is a straight path to underperformance. We are partial to Warren Buffett / Charlie Munger “focus investing” where we concentrate investments on the best opportunities. We do, however, make 25-30 investment recommendations per year so we provide our clients a variety of investment alternatives. Over Diversification
 
 

Who we work with

BondSavvy believes owning individual corporate bonds can help investors achieve higher returns and better principal protection than bond funds. We make 25 to 30 bond-level recommendations annually for the below client groups. Click a box to learn more.

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