High Quality

Look for holdings that are rated Single-A or better.

Diversified

Guarantor exposures generally range between 1% and 5%, depending on portfolio size.

Tax-Exempt Municipal

bonds with general obligations and essential services (water/sewer, utility, and some public transportation) should be prioritized. Economic Development and securities linked to project economic performance should be avoided.

Corporate Bonds

Emphasize broad industrial holdings with close to no exposure to financial services.

Government Bonds

Minimal exposure with a focus on Treasury Inflation-Protected Securities (TIPs) and Agencies.

Laddered

Maturity distributions in portfolios guarantee that cash flows are spaced out and predictable in timing. Even if underlying market interest rates rise, portfolios are not too vulnerable. Furthermore, coupon revenue might be reinvested based on market circumstances. Rather than ETFs, individual security allocations provide better cash flow timing and tax efficiency.

Low Optionality

Many bonds feature complex options that allow issuers to call the bond before it matures. This method is more likely to be used when interest rates decrease and you don't want to lose your bond's cash flows. Atlas prioritizes bonds with no-call features to help ensure the predictability of future cash flows.

Held To Maturity

Fixed-income securities are bought with the expectation of holding them to maturity. Bonds to maturity are insulated from realized gain/loss tax consequences; intra-holding period mark-to-market gain/loss is never recognized.

Standard

We avoid Structured notes, Principal Protected notes, Collateralized Mortgage Obligations (CMOs), Collateralized Debt Obligations, or any complex or opaque securities constructed to look like a bond.