Investing in Bonds – DFPG’s FIT Program
We are excited to announce that DFPG has established a Bond Desk and created a proprietary investment strategy called Fixed Income Timing (“FIT”) to promote bond investments in either brokerage or advisory accounts.
Investing directly in bonds has several advantages over bond funds. Bonds can be held to maturity thereby eliminating interest rate risk. Moreover, investing directly in bonds bypasses a layer of fees associated with bond funds and is cost effective. Given the current rising interest rate environment, we believe FIT is timely.
FIT employs three layers of analysis to select appropriate bond investments. The first layer attempts to discern the direction, velocity and timing of future changes in interest rates. When rates are rising, FIT is on defense, When rates are declining, FIT is on offense. Second, FIT will examine the term structure of the bond market by analyzing a yield curve to determine the target portfolio duration and either a bullet, barbell or laddering strategy. Finally, FIT will assess the credit structure of the market as an indication of whether it may be opportune to look at AA or A rated bonds for the higher yield.
DFPG will support FIT by creating a Bond Desk which is available for assistance with training, marketing or trading. DFPG Staff assigned to the Bond Desk are Natina Edgar, Bracken Larsen, Eric Voegeli, Alex Fitzgerald and Brayden Evans.
DFPG has created a client approved PowerPoint presentation and will distribute a monthly client-approved FIT Newsletter. Both of these may be white-labeled to accommodate your branding.
There will be a FIT webinar on November 19th at 2pm MT and we welcome inquiries prior to the webinar. You can register here.
Please send an email to Nick Hansen, firstname.lastname@example.org, to receive the presentation and newsletter. You can also be placed on the FIT email distribution list for regularly updated materials.