Orion Capital Management offers Managed Bond Accounts for clients interested in income producing portfolios of individual bonds. Our principal strategy is to create diversified portfolios of investment grade securities focusing on current income. We only invest in securities issued or guaranteed by the U.S. government, or its agencies, or corporate issuers rated in the three highest investment grade categories by Moody’s or S&P at the time of investment. In order to focus our search for the best and highest grade corporate bonds available, we have developed and maintain a list of top-rated companies to continually comb for bargains to fulfill our portfolio needs. A copy of our current list is attached.

<< See Our Approved List of Top Rated Companies >>

^{*Interest rates depicted are for illustration purposes only and will vary daily.}

Since Orion Capital Management is a fee-only investment advisor, we do not make a commission or mark-up the bonds we purchase or sell for clients. Our incentive is to find the very best fixed income opportunities for our clients’ portfolios. We shop for our bonds through an extended network of institutional bond dealers and, therefore, are able to purchase and sell at extremely competitive price levels, not at retail prices. Best of all, our price is our client’s price. We are compensated by a small annual management fee based on the total assets we manage.

We also provide municipal bond portfolio management for clients interested in taking advantage of the tax free benefits of municipal bonds. The municipal bond market is much more segmented than the corporate bond market, often resulting in dramatically broader bid/offer spreads. We approach this market the same way we approach corporate bond trading. We emphasize best quality, and we work through a large network of institutional dealers. We do not make a commission or mark-up on the bonds we purchase or sell. We try to identify bonds of local interest whose issuers are not widely known outside of a given area. We find this often results in extraordinary bargains for our clients.   

We believe current market conditions offer excellent opportunities in fixed income instruments at this time. Corporate and municipal bonds are normally tied to the yield curve described by US Treasury instruments. Corporate bonds normally yield a little more than government bonds because they are considered more risky. Municipal bonds normally yield a little less than government bonds because of their tax advantage. The spread between the price of corporate bonds vs. government bonds and municipal bonds vs. government bonds of similar duration tend to be relatively stable over time. When these spreads deviate from normal levels, it creates opportunity. (See illustration) Currently interest rate spreads are unusually wide. We are seeing instances of both corporate and municipal bonds priced much better than their government equivalents. At times municipal bonds are cheaper on the face than government bonds. 

In order to better serve our bond clients, we have developed the Orion Fixed Income Investment Platform (OFIIP). Our fixed income platform delivers real-time and executable multi-dealer offerings directly to your desktop. For more information on the Orion Fixed Income Investment Platform, click here.