How We Are Different
We offer foreign currency bonds.
Every day we have access to bonds in many foreign currencies. Most often these bonds have much higher yields than US bonds, and we believe they are a proper component of diversified portfolios.
Our recommendations are relative value specific, and we cross over between taxable and tax exempt markets
Some firms and departments of firms focus on either selling exclusively tax free bonds or taxable bonds. We constantly monitor both markets and recommend bonds where the highest after tax value is available to the account holder. Consequently, our accounts often contain both taxable and tax exempt bonds.
We follow the mortgage pools and collateral trusts and offer Collateralized Mortgage Obligation (CMOS) and Ginnie Maes
Collateral pooled bonds require special resources to learn the important characteristics of each offering. CMOs have been pinned with the scarlet letter. Perhaps that is in part because a Collateralized Mortgage Obligation's yield and average life will fluctuate depending on the actual rate at which mortgage holders prepay the mortgages underlying the CMO as well as with changes in current interest rates. However, we have found above average yield in very specific mortgage backed products. Some firms don’t have representatives that truly understand the CMO markets nor have the tools to analyze the specific security and therefore, don’t offer these complicated but potentially lucrative securities. Our representatives are seasoned veterans in all sectors of the bond market. Ask a representative today to show you an attractive looking CMO. Let them walk you through step by step to determine if the security may right for you.
Each of our representatives has access to the best investigative tools in the marketplace
We have extraordinary systems providing comprehensive detailed knowledge about bond issues and the credit characteristics of issuers. Ours do, and this is why we can do the detailed investigation required to be the best in fixed income. When comparing services, ask your securities representatives for emailed prospectuses, offering memorandums, ratings statements, issuer analysis and compare what you receive.
We take time to tailor make portfolios for our larger clients
A great bond portfolio has the highest yield with the least amount of risk – or relative value. Great portfolios are not put together by looking at all the offerings available on a given day and sending out an investment plan and then executing purchases from the bonds available today on the screens. Rather, great portfolios are created over months, picking off the bonds that come to market daily and trade fast. Each day our teams are at their desks early, surveying the worldwide markets for those new pieces just coming to market out of large institutional inventory. We make solid analysis, and if we like it we buy it for our inventory. Our managed accounts then receive first opportunity to acquire these bonds. Next we contact our brokerage clients, who receive them next. Only the leftovers are then placed at higher prices on the offering screens.
We help you manage Put Bonds, while most firms do not
Bonds with the right for the holder to sell the bond back to the issuer within a certain time specific window of dates are called Put Bonds. Often these bonds provide the holder with a great opportunity to sell his bond and exchange it for a higher interest rate sometime in the future, but there is a catch. Most firms do not have a system to notice investors regarding a “Put Date” and many bonds never get analyzed as to whether the put makes sense. We have a system. Both your representative and you, as an investor, will be on the list to receive an email when your puts come due as long as we have your bonds in our accounts.
We give you access to bonds with higher minimum denominations
Many bond issues only allow trading between firms at DTC (Depository Trust Company, the registrar of all book entry securities) in denominations of $100,000 or more. Consequently, some firms will not allow you to own a $50,000 piece of such an issue. We do. This gives another whole dimension to the the opportunities you have in fixed income. Talk to your representative about the ramifications of owning such bonds.
Fixed or Floating Rate -- a Constant Question
When the majority of investors perceive interest rates to be rising, floating rate bonds come into vogue. The opposite occurs when interest rates are perceived to be steady or falling. These perceptions can have dramatic effects on the prices for floating rate bonds, and buying them when out of vogue and waiting for market perception to change can be very rewarding. Not only do you collect the floating rate but also a large capital gain when you sell. We constantly monitor the floating rate bond market looking for value. Sometimes it is difficult to calculate the proper coupon in floating rate securities and consequently some firms might not offer these types of securities.
Support by RBC Correspondent Services. All our accounts are held at RBC Correspondent Services, a wholly owned subsidiary of Royal Bank of Canada, Inc. who has contracted with Lloyd's of London to protect client assets of up to $100,000,000 in securities and $1,000,000 of cash per account. All customers can view their accounts daily at View Accounts .
"Take about 5 minutes to open an account with us today. Registration generally takes one business day but can be accomplished faster if you call us. As soon as your account is registered, you may trade up to 25 bonds with us immediately. Then the door will be wide open to saving thousands in mark-ups and enhancing yields on your bond investments."
- James Korth, Founder J. W. Korth & Company
Every day we have access to bonds in many foreign currencies