Our strategy seeks to capture the momentum of the current yield curve while attempting to avoid unexpected event risks.  Our focus is principal protection.  Only high quality, investment grade fixed income instruments are utilized.  All portfolios are managed to one of three duration targets; short, intermediate or long duration. Client-specific guidelines dictate which duration target is appropriate for each account.

Only the highest quality fixed income securities are utilized in client portfolios.  Duration is managed for each strategy with the use of overnight funds, direct obligations of the US Treasury, high quality corporate bonds, and Exchange Traded Funds (ETFs).  Treasury Inflation Protected bonds (TIPs) are often employed as an inflation hedge.  Use of these instruments ensures exposure to various sectors of the financial markets.  We do not invest in high yield or global bonds and we do not introduce currency risks.

CMC manages short duration portfolios using overnight funds and other short term direct obligations in a laddered strategy with the maximum maturity limited to one year.  Intermediate duration portfolios are managed within a one to three year limit.  Long term duration portfolios are managed not to exceed a four to five year duration. Both the intermediate and long term duration strategies are then managed based on CMC's outlook of interest rates, the impact of expected Federal Reserve policy, the impact of sector spreads, and other variables which can affect the movement of interest rates.