76% of Our Picks Beat iShares Bond ETFs

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


What we believe

BondSavvy challenges the status quo on long-held beliefs to uncover unique corporate bond investment opportunities we present during The Bondcast. Hover over the outside circles to learn how we approach corporate bond investing.

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 believe investors can benefit from owning individual bonds vs. bond funds. Owning individual bonds can help investors achieve higher returns because a bond owner can be selective and only buy the best bond investments whereas funds have to overdiversify and own thousands of bonds. Individual bonds also have lower fees and pay you back at maturity. "Fundification" of Investing We don’t see interest rates as the primary driver of bond prices. Rather, we see them as one of many factors impacting bond selection. 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. Limitations of 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 not needed by many investors. 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. Focused Investing vs. Indexing