Asset Preservation Advisors believes that there are pricing inefficiencies in the municipal bond market. We seek to capitalize on these and add value through active portfolio management. Our mission is to protect our clients’ principal and enhance yields by investing in high quality investment grade municipal securities, primarily in the secondary market.
We believe that buying and selling of municipal bonds must be strategically executed due to the nuances of this non-transparent, over the counter market where price mark ups and factors such as large supply and demand imbalances can dramatically influence overall bond prices. APA’s municipal investment experience combined with our extensive broker/dealer relationships assist us in our goal of obtaining the best execution for our clients’ portfolios.
APA does not utilize passive account management, but will vary portfolio structure due to changing market conditions. We believe this approach tends to reduce volatility while creating the most favorable risk/return profile for our clients.
Active Portfolio Management
APA’s focus is on tailoring portfolios to meet the unique investment and estate needs of each client. We utilize active account management, effective trade execution and credit/interest rate analysis to capitalize on opportunities in the fragmental municipal bond market.APA’s Focus Is On:
- Yield Curve Analysis – Analyzing the slope of the yield curve to determine the most favorable risk/reward profile.
- Duration Management – Maintaining duration close to the benchmark, but varying portfolio structure (barbell, ladder, bullet) depending on market conditions and client profile.
- Sector Allocation – Capitalizing on temporary imbalances in supply and demand among various sectors.
- Credit Analysis – Monitoring changing yield spreads to capture incremental yields and identify potential upgrades and downgrades by the rating agencies.
- Security Selection – Striving to add value for our clients through trading and security selection. We attempt to exploit market inefficiencies and purchase certain municipal securities when we believe they are trading below intrinsic value.