Bond Selection

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Through detailed financial analysis of an individual corporation and careful scrutiny of the fixed-income markets, attractive investment opportunities in corporate bonds can be uncovered. Corporate bonds are selected based upon two key criteria: valuation of a bond's price and the financial condition of the underlying or issuing company.

Valuation

To purchase any corporate bond, there must be an attractive spread over a Treasury issue of a similar maturity.

Financial Strength

The company must exhibit a strong or improving balance sheet with adequate interest expense coverage. The fundamental outlook must be one of financial stability or growth of cash flow.