Aimee Korch, Director of Relationship Management at Breckinridge Capital Advisors, joins Will today to discuss fixed income.

Aimee says fixed income is the “most interesting” area of work for her. According to Aimee, there are so many ways the financial system can create debt, which fuels the economy. There are a lot of conversations on stocks, but not fixed income, so it tends to not come to mind for most people. Public stocks also tend to be more straightforward, whereas bonds work more inversely.

Individual bonds or bond mutual funds? Aimee says owning individual bonds is an interest to investors who have unique guidelines and want customizations. Mutual funds are more of “what you see is what you get.” Breckinridge invests in investment-grade bonds and doesn’t venture into high-yield or junk bonds. High-yield bonds generally offer higher returns due to their riskier nature, as they have lower credit ratings and weaker balance sheets. This increased risk could lead to a higher chance of default. The suitability of high-yield bonds depends on an investor’s risk tolerance and financial profile.

The decision to invest in a single segment or multiple segments within fixed income is subjective and depends on the client’s objectives and portfolio context. There’s no one-size-fits-all answer. Generally, diversifying across multiple segments is beneficial as it spreads risk, but the choice ultimately depends on the client’s specific goals and preferences.

Find Aimee here:
Breckinridge Capital Advisors | Website