Anyone work with bond portfolios?

Cross-posted in the IB forum: 

I've got a client that asked me for some general advice on placement of a decently larget chunk of capital (100M+) into bond products.  Not looking for any specific bond products to invest in but more about what type of questions you would be asking of said client to get a better understanding about what they are looking for as far as goals for their investment go.  This is an entirely new space for me as I don't have any experience in bond investing outside of putting some of my own money into bond funds for retirement.  I know there are some strategies such as ladders etc. I just have no idea how to approach the conversation to figure out exactly what it is they are looking for outside of capital protection.  Any advice?

Comments (8)

Most Helpful
Dec 6, 2021 - 3:25pm

I'd find out more about the composition of their portfolio at the moment. how big is their portfolio? why are they interested in bonds? why 100m? will that be an annual investment? Do they need liquidity? how much risk do they want to take? low volatility? I'm assuming it's an institutional client, insurance/pension. I could arrange a managed account for them at one of the best known asset managers, if you want to discuss? I'm meeting with some very senior guys at this shop tomorrow if you want me to ask any questions. I'm going to shoot you a PM about my other thread you replied to in any case. 

  • 3
Dec 6, 2021 - 3:27pm

this is the questions I'd be asking them first ^
to answer your last point, outside of capital protection, liquidity and diversification I'd imagine. 

Dec 6, 2021 - 8:09pm

Thanks for the reply.  Yea I had most of those questions in mind.  But you did give me something to think about in terms of how to look at the questions and why.  Replied to your DM as well. 

  • Intern in HF - EquityHedge
Dec 11, 2021 - 12:28pm

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