Since bonds are actually loans, we look at credit quality and value before investing a single dollar into any security.
We maintain a list of acceptable companies whose bonds we 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.
Every day we evaluate market levels of yields for all maturities in each major fixed income sector. When cash availability and economic factors indicate a desire to add to portfolios, we seek bonds of approved issuers whose yields well exceed those of credit-quality peers in the target maturity range.
The professionals at Byrne Asset Management have managed fixed income portfolios since the early 1980’s. We have successfully guided client assets through double digit inflation, recessions, and multiple debt crises. We managed and advised mutual funds, foundations, and pension plans, handling 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.