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Bonds carry risk. The risks are simply different from equity risk, and they surface at different points in the cycle. Interest rate risk is the most familiar. When rates rise, prices fall. A long-duration bond can lose a meaningful share of its market value in a rising rate environment. That is not a default. It is a mark-to-market loss on a security still scheduled to pay its coupons. But for a client who needs liquidity before maturity, or who holds a fund with no maturity date, the loss is real. Credit risk is less intuitive. When an issuer's condition deteriorates, its bonds reprice long before any default. In high yield, spread widening during stress can produce equity-like drawdowns. Inflation risk is the most underappreciated. A 4% coupon in a 5% inflation environment is a negative real return. Fixed income investments carry risk, including possible loss of principal. Clients who understand which risks they hold are better prepared to hold through them. Full breakdown here: https://lnkd.in/e_8TjV3h/?utm_campaign=BrandAwarness-Impressions&utm_source=linkedin&utm_medium=paid&utm_id=827509946&hsa_acc=512609976&hsa_cam=827509946&hsa_grp=919229946&hsa_ad=1662660986&hsa_net=linkedin&hsa_ver=3 #FixedIncome #BondInvesting #SeparatelyManagedAccounts

A passive bond fund cannot reduce exposure to a deteriorating issuer. By definition, it holds what the index holds. When credit conditions weaken and specific names come under stress, the fund keeps them because they are in the benchmark. Index weight decides, not credit fundamentals. Managing credit at the issuer level looks different: - A fixed income professional reviews individual names - Credit metrics are monitored for deterioration - Rotation decisions are based on fundamentals, not index membership This is what institutional fixed income management has always done. Until fairly recently, clients of independent advisors had limited access to it. A separately managed account, built and actively monitored by an experienced team, is designed to make both levers available. Duration can be positioned for the rate environment. Credit exposure can be selected based on issuer quality and spread levels. And the advisor can see every position and every decision. More on what that infrastructure requires: https://lnkd.in/exX__YC4/?utm_campaign=BrandAwarness-Impressions&utm_source=linkedin&utm_medium=paid&utm_id=827509946&hsa_acc=512609976&hsa_cam=827509946&hsa_grp=919395016&hsa_ad=1662593866&hsa_net=linkedin&hsa_ver=3 #FixedIncome #CreditRisk #WealthManagement

During Piton Investment Management's Q3 2026 Fixed Income Update webinar, CIO Brian Lockwood, CFA closed with his outlook for the rest of the year. "What's your sentiment heading into year-end as the Fed tightens into a strong economy?" Brian cautioned that not everything in the economy is participating, and persistent inflation could weigh on consumers and jobs. At the same time, yields are at very high absolute levels, with 30-year Treasuries above 5.5% and the 10-year near 5.25%. That led him to an old concept: disintermediation. When bonds offer returns close to what investors expect from stocks, money moves out of equities and into safe, liquid bonds. Brian thinks that shift could start as soon as the fourth quarter. Watch Brian's full year-end outlook here: https://hubs.ly/Q04zr6G20 #FixedIncome #AssetAllocation #BondMarket #WealthManagement #Q32026

In Piton's Q3 2026 Fixed Income Update webinar, CIO Brian Lockwood, CFA addressed a question many investors sitting in cash are asking. "3-month T-bills yield 4.24% and money market assets sit near $7.94 trillion. How should investors think about cash?" Brian agreed that cash has been king versus bonds this year. But depending on how shallow the hiking cycle turns out to be, cash will top out at some point. He contrasted today with a few years ago, when the yield curve was inverted and cash yielded more than Treasuries. Now the curve slopes positive, and Q3 made extending even more rewarding. His suggestion: a baby step out of the curve to lock in yield for longer. Watch the full webinar to hear Brian's view on cash here: https://hubs.ly/Q04zr6xD0 #CashManagement #YieldCurve #FixedIncome #Treasuries #Q32026

During Piton's Q3 2026 Fixed Income Update webinar, CIO Brian Lockwood, CFA dug into the hardest hit sector of the quarter. "The Muni index lost 1.81% last week and managers put $3.4 billion out for bid on September 23rd, the second-highest on record, yet Muni ETFs drew record inflows. Is the worst behind us?" Brian expects Munis to stabilize. Heavy supply played a role, but he also highlighted an overlooked driver: kicker bonds. These callable Munis are assumed to be called early, but when rates rise sharply, they turn into much longer bonds. Index managers whose duration suddenly extended were forced to sell. The result is opportunity. Munis are cheap, and not just in high-tax states. Investors in Texas and Florida can now get Muni portfolios at 85% of taxable counterparts, historically a cheap level. Watch Brian's full Muni market analysis here: https://hubs.ly/Q04zr5Wz0 #MunicipalBonds #Munis #TaxExempt #FixedIncome #Q32026

In Piton Investment Management's Q3 2026 Fixed Income Update webinar, CIO Brian Lockwood, CFA shared where he does and doesn't see value after the quarter's selloff. "IG spreads are near 80 basis points with yield-to-worst near a three-year high of 5.93%. Where do you see relative value?" Brian's answer: Q3 created value, but not in investment grade corporates. Spreads widened only a little, largely a supply story, with big deals like the Paramount bonds testing the market's appetite. Even as rates rose more than 80 basis points from 3 to 10 years, IG spreads held their relative tightness. High yield was the exception, where spreads widened. Corporates still performed poorly because of duration. Watch the full webinar for Brian's credit market take here: https://hubs.ly/Q04zr4pH0 #InvestmentGrade #CorporateBonds #CreditSpreads #FixedIncome #Q32026