As we start another year, we want to work with you, our clients, to keep an eye out for new opportunities. Many of our clients have significant cash reserves which they accumulate as part of their safety net and a rainy-day fund. In the past leaving the funds in the bank or looking for investment opportunities did not make much difference as cash was essentially yielding nothing and a dormant asset class. Things have changed, it’s time to upgrade your fixed income.
As the Federal Reserve has begun to raise interest rates cash is no longer an asset class to be ignored. Boost your income and diversify your investments with short-term fixed income. There are many vehicles which now can be considered as an alternative to low yielding idle cash or bank money market accounts. Consider the benefits of high-quality short-term U.S.Treasury bills and notes, intermediate-term tax-exempt municipal bonds, or investment grade Collateralized Loan Obligations. Depending on the time horizon, liquidity needs and risk tolerance, we can find a productive home for those idle funds that will generate income and add balance to your investments.
Short-Term Fixed Income
Short-term fixed income will generate more interest income than a typical savings account and the investments have been found to preserve capital. Generally, there is very little market volatility and the funds are usually available within two days of the request. We have found this to be ideal for people who are saving for a specific goal or to keep a reserve.
Please contact us if you would like to discuss the cash opportunities discussed above. We look forward to hearing from you.