As market generalists and specialists, we have the ability to find the best hidden value. Hidden value is constantly evolving and moving, but our team’s expertise in all Fixed Income Classes and rates allows you to capture this elusive financial gem. There was a time when taxable municipal bonds were being overlooked by corporate credit buyers and ignored by tax-free municipal buyers. They were trading at a tremendous discount to similarly rated corporate credits, so we pushed as many buyers as possible to these credits. It’s examples such as these that illustrate our advantage in having a first-hand knowledge of the surrounding Chicago metropolitan taxing districts, as well as our track record of buying fantastic credits at very attractive discounts to national names.
Searching for value requires an open mind with rates remaining low. Under LaSalle’s investment council oversight, we aren’t afraid to expand our credit search criteria to recommend lower rated bonds (split rated or just below investment grade) for the right buyer. Generally, we advocate against yield chasing by way of sacrificing credit quality. We would rather, and have extensively recommended maturity extension with success during the past decade of historically low interest rates.
Through years of daily trading and bond buying, we have finely tuned our ability to analyze credits and uncover under-appreciated and overlooked story bonds that maintain sound financials. We have locked in some incredible value in off market taxable and tax-free municipal bonds, zero coupon municipal bonds, CD and agency step-up coupon bonds. With careful consideration we will direct our customer’s attention to these opportunities, while having an honest conversation about risks.