Bond Premium Strategy

An active fixed income strategy that seeks to generate superior income and total return performance relative to the broad domestic bond market. The strategy generates additional income through utilizing covered call strategies and/or adopting cash secured put-write strategies.

Investment Strategy

  • An active fixed income strategy that engages in duration management and sector allocation.
  • Typically obtains bond market or selected sector exposures through low cost, highly liquid ETFs.
  • Generates additional income through utilizing covered call strategies and/or adopting cash secured put-write strategies in lieu of holding fixed income ETFs when volatility premiums are attractive relative to yields and/or total return expectations.
  • May allocate a portion of the portfolio to non-investment grade credit and non-dollar credit on an opportunistic basis.
  • The strategy is long-only and unlevered, but it could be customized at client discretion to include short positioning and leverage if desired.