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Wednesday, September 12, 2018

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty
Kevin Doyle • Lonnie Harris •  Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer
 Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell • Gus Koppen

US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
9/05/18 2.00 2.14 2.30 2.49 2.66 2.72 2.77 2.85 2.90 3.00 3.08
9/06/18 1.98 2.13 2.30 2.50 2.64 2.71 2.76 2.83 2.88 2.98 3.06
9/07/18 1.98 2.14 2.30 2.53 2.71 2.78 2.82 2.89 2.94 3.03 3.11
9/10/18 1.98 2.14 2.32 2.54 2.73 2.78 2.83 2.89 2.94 3.02 3.09
9/11/18 2.02 2.15 2.31 2.55 2.76 2.83 2.87 2.94 2.98 3.06 3.13
                                                                                                                                       Source: U.S. Department of the Treasury, as of 09/11/2018


Barbell Strategy: Income from the Long End
 
As was highlighted in yesterday’s Portfolio Manager’s Report, cash flow should be king on the short end of a barbell strategy.  However, there is still a budget projection to meet…. And locking in higher yields from securities on the long end of the barbell can help you to achieve your income goals.

Typically, tax exempt municipal bonds (for those buyers in the appropriate tax brackets) would be the preferred security for this end of the barbell as there continues to be good value in the 10-15 year range on the yield curve.

Shown below is the offering circular for the City of Maize, KS issue which reflects balances remaining from a recent CCB Capital Markets Group underwriting.  As shown, the taxable equivalent yields on the remaining maturities in  ’28, ’31 and ’32 provide excellent spreads to the Treasury curve particularly for S-Corp bank in the 29.6% tax bracket.


Balances as of 9/11/18


This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value