Investors understand the importance of spreading risk across a variety of asset classes. Investing in fixed income securities can be an effective strategy for addressing the risk of your portfolio and potentially delivering a steady stream of current income.
SunTrust Investment Services, Inc. Advisors will work with you to create and address the fixed income portion of your portfolio and inform clients on risk and credit ratings to help address portfolio diversification and value.
As a Private Wealth Management client, you will have access to a variety of solutions, from customized individual fixed income portfolios to mutual funds.1
- U.S. Treasury securities: Treasuries are debt obligations issued to finance the federal government and guaranteed by the U.S. government’s “full faith and credit.”
- U.S. Government agency bonds: These securities are issued by government-sponsored enterprises created by Congress to fund loans to such borrowers as homeowners, farmers and students.
- Corporate bonds: These bonds are issued by corporations to finance capital investment and operating cash flow. When you buy a corporate bond, you are lending money to a company that promises to return your principal on a specified maturity date. Until that time, the bond also pays you a stated rate of interest. Corporate bonds carry various ratings, risk and call provisions and should be selected based on the risk profile of the client.
- Tax-exempt municipal bonds: These bonds are issued by state and local governments to raise funds to build schools, parks, sewer systems and other projects. One of their key benefits is that the interest paid is exempt from federal income tax.2 Some are also exempt from state taxes. These investments carry various ratings and backing (revenue or general obligation) and call features and should be evaluated based on the risk profile of the client.
- Index Linked CDs: A hybrid investment combining an FDIC insured CD for principal protection linked with the growth potential of the equity, commodity or currency markets. Instead of paying a fixed rate of interest, these products typically pay a return at maturity based on the appreciation of a market index. If held to maturity the investment will return principal plus the return of the linked market index, if any.