As bonds are actually loans, we look at both credit and value in anything we buy.
We maintain a list of acceptable companies whose bonds we would welcome into our managed portfolios. We review every firm on the list each quarter and upon any significant news. We add companies when new bonds of excellent relative value come to market and the issuer meets all of our requirements. We remove firms when operations or events cause any of those requirements to be unmet. Among the characteristics we demand are:
- Strong balance sheets
- Healthy cash flow
- Stable, preferably growing, operations
- Outside affirmation from credit agencies such as Standard & Poor’s and Moody’s.
Everyday we evaluate market levels of yields for all maturities in each major fixed income sector. When cash availability and economic factors determine that we should be looking to add to portfolios, we seek bonds of approved issuers whose yields well exceed those of peers (same maturity, same credit worthiness).
The professionals at Byrne Asset Management have managed fixed income portfolios since the early 1980’s. We have efficaciously guided client assets through double digit inflation, recessions, and a host of debt crises. Our backgrounds, which includes mutual fund, foundation, and pension plan management, entail deep experience with about every type of security out there, including “junk” bonds, convertibles, mortgage-backed securities, derivatives (options and futures), and international debt. As we stick to our investment grade “knitting”, our clients can be confident that our wide purview serves the goals of safety and return quite well.