Income Generation

  • We seek to maximize after-tax income and total return across a broad portfolio of both taxable and tax-exempt municipal bonds.
  • We seek to generate returns through a combination of investment carry (yield), and price return due to credit spread changes and duration impact.
  • We manage duration and credit risk to meet our investors’ risk tolerance.
  • Our investment process focuses on individual credits and sector allocations that leverage deep internal credit knowledge and municipal market technicals to enhance total return.
  • Investment horizons are generally one year or longer.

Absolute Return

  • Our absolute return strategy targets investment opportunities in the municipal marketplace that arise from market structure and from the fact that the buyer base is more than 70% retail and therefore focused largely on generating tax-exempt income.
  • We generate most of the returns through capital gains from trading relative value relationships, liquidity provisions, and fundamental investing.
  • Our investment process leverages our deep internal credit knowledge, institutional risk management and capital markets expertise.
    • We seek returns that are generally uncorrelated to the broader credit markets and employ leverage.
    • We hedge interest rate risk and actively manage credit and basis risk.
    • Individual investment liquidity ranges from very liquid to illiquid.