Bonds and Cash

We offer a wide variety of taxable and tax-exempt fixed-income portfolio strategies, along with cash and short-term investment strategies.

Our core fixed-income portfolios seek to preserve capital, provide current income and serve as ballast against stock market volatility. We also offer other portfolios that provide greater stability or higher income, for investors who desire them. We actively manage all of our portfolios to mitigate risk and seek superior long-term returns, employing systematic, research-based processes.

Bonds: Broad Offerings to Meet Your Objectives


Our rigorous risk-management process monitors the ability of bond issuers to make timely payments of interest and principal. We also monitor interest-rate risk, which refers to fluctuations in the value of bonds resulting from general interest-rate changes. For example, in a declining interest-rate environment, the portfolio may generate less income. In a rising interest-rate environment, bond prices tend to fall. We seek to mitigate these risks through active management of well-diversified portfolios.

ACTIVE BOND MANAGEMENT: CRUCIAL IN A LOW-RETURN WORLD


Active bond management can add return and reduce risk through:

  • Yield-curve positioning
  • Managing portfolio duration
  • Adjusting exposure to credit quality
  • Security research

Our cash and short-term investment services provide varying degrees of liquidity, income and risk. In some services, we seek to manage risk by investing in securities backed by the full faith and credit of the US government. In others, we take advantage of access to FDIC protection.

To determine which service is most appropriate for you, we consider how you plan to use the assets, how long you expect to hold them, your tax situation and your income needs. A Bernstein Advisor can help you assess the best choice.

The Evolving Bond Market