Fixed income securities (bonds) typically play an important role in the investment strategy of clients seeking a balance between capital preservation, income and liquidity. Ocean Financial Services can provide you with a variety of bond alternatives to best match your specific needs. Our selection includes US government and agency bills, notes and bonds, US and international sovereign and corporate bonds, as well as bonds with exposure to foreign currencies.
A bond is a debt security, similar to an I.O.U. When you purchase a bond, you are lending money to a government, municipality, corporation, federal agency or other entity known as an issuer. In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures, or comes due.
Typically, bonds pay interest semiannually, which means they can provide a predictable income stream. Many people invest in bonds for that expected interest income and also to preserve their capital investment. Also, adding higher quality bonds can help reduce the volatility of a diversified investment portfolio. However, it is important to remember that the value of bonds tend to have an inverse relationship with the movement in interest rates. When rates rise, bond values tend to fall, and vice versa.
Whatever the purpose, where it is saving for your children’s college education, buying a new home, increasing retirement income or any other financial goal, investing in bonds may help you achieve your objectives. Our Ocean Financial Services investment professionals can assist you with selecting the right bonds to complement your investment portfolio.