Fixed Income Management

Over the years, City National has developed a particularly strong level of expertise in the bond markets. Our fixed income managers are highly experienced experts who continuously evaluate a broad universe of fixed income securities that present opportunities for income, total return and stability in virtually any interest-rate environment. We are in the bond market daily with our staff of highly skilled investment managers and analysts who actively trade and shop on behalf of our clients for the best possible opportunities and pricing.

Our strategic approach sets us apart.

In line with our ongoing commitment to provide comprehensive investment management strategies to our clients, we develop fixed income strategies that will complement an equities portfolio or provide a diversified bond portfolio unto itself. Economic and market analyses guide the development of interest-rate scenarios that frame the strategies for duration, sector and credit quality. Through continuous market research, we find opportunities and develop tangible strategies that maximize long-term return, optimize tax advantages and minimize risk. This overall strategic framework guides the investment manager in constructing each individual client portfolio.

Quantitative modeling provides objective and systematic evaluation.

Quantitative modeling is another competitive advantage for City National clients. Our proprietary computer-assisted approach helps us carefully match potential fixed income selections with a client's portfolio characteristics to ensure the most efficient risk-return ratio while still meeting the client's overall strategic growth goals. Simulation studies available through our computer modeling system explore how a portfolio will perform in different interest-rate environments and enable us to be highly responsive to market and economic changes.

As with equities, our sell discipline enhances return, but not at the expense of risk. With bonds, our decision to sell is generally based on the emergence of one of these variables:

• Credit fundamentals
• Better trading opportunities
• Liquidity needs
• An opportunity to maximize after-tax returns

We offer tailored strategies for tax-sensitive portfolios.

For clients interested in tax-exempt portfolios, we add value through strategic diversification across geography, issuer and maturity. Our managers have extensive relationships in the municipal and government sectors and know when securities become available that provide value and also fit specific investment and tax objectives. Numerous tax strategies are employed, including:

• Opportunistic swaps to extend/reduce portfolio maturity
• Callable bonds to add yield
• Choice of out-of-state versus in-state bonds to boost after-tax yield

Getting Started

As a valued client, you deserve the resources and one-on-one personal attention you can find only at City National Bank.

To learn more, please contact us or visit us at one of our Private Client Services locations.