Avoiding The Trap Of Chasing The Highest Rates Communicating Your Investment Strategy Developing An Investment Strategy Finding Money Reducing Risk In Your Operational Fund.html The Yield Curve
Investment Philosophy
Brokerage Services Investment Advisory Services Pension Services Consulting Services

Why You Might Consider
Longer-Term Investments


This one’s easy enough — a longer-term investment usually pays a higher return, so it’s just the kind of investment you want. Picking a long-term investment is doubly attractive when interest rates later decline, because you’ve locked in a portion of your portfolio at that higher rate of return....



One investment that is often overlooked, or possibly invested in a risky manner, is the debt service reserve fund (DSRF) of your revenue bonds. More than half the public entities I’ve worked with have paid more than they should for the municipal bonds they’ve issued...

Developing an Investment


Having a plan or strategy is critical. Without a plan, you’re just picking investments and chasing today’s yield, and that’s not always the most profitable bet, nor the safest.
Ironically, many without a plan will simply purchase CDs, shopping to find the best-paying interest rate...

Communicating Your
Investment Strategy


Why put your plan in writing? Here are a couple of reasons why it’s important to do so:
It helps you put your thoughts together and communicate them effectively.
It helps you connect with the inevitable someone who can show you a better way of doing things...

pfi logo

Reducing Risk in Your
Operational Fund


In order to take risk out of a portfolio, you need to define the risk. Take a look at the portfolio risk document for some ideas on ways to look at you potential risks.
Although you have multiple risks to consider, first look at the interest-rate risk...

The Yield


In the bond market, a yield curve is the indicator that most investors watch more than any other. Few indicators are as reliable as the yield curve, and it’s one of the best forecasting tools available. The yield curve isn’t as good as a crystal ball, but it’s a fairly good way to assess the short-term direction...

Investing in
Bond 101


Basis point. A basis point is one hundredth of a percentage point. Basis points are used to measure the difference in bond yields. If the yield on a bond falls from 5.10 to 5.03 percent, then the yield has declined by 7 basis points.
Bid and ask price...

Avoid the Trap of "Chasing the
Highest Interest Rates"


The county had a general fund of $60 million, but no cash-flow analysis had ever been done to determine its liquidity needs. Some 90 percent of its fund was invested in short-term investments — the longest maturity was under six months. The county had invested this way for as long as anyone...