The Role of Bonds
For clients who have a desire for asset preservation, Hayek Kallen incorporates fixed income (or bonds) into their portfolios. When purchasing bonds, Hayek Kallen does so with the intent to hold them until maturity. Given the desire to hold bonds until maturity, Hayek Kallen looks for bonds to provide stability and income into a portfolio. Non-investment grade bonds (or “junk bonds”) are not considered for investment, given the higher credit risk associated with them. The maturity range of our bond portfolios is driven by a number of factors, foremost among them being overall economic expectations and the prospects for higher or lower interest rates. Hayek Kallen will also take a client’s tax situation into consideration when buying bonds and when appropriate incorporate tax-free bonds into a portfolio.