Case Studies

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Coastal Bridge Advisors connects clients with catastrophe bonds available only to large institutions

Faced with the prospect of rising interest rates, clients with traditional fixed income investments received previously unavailable access to help maintain wealth

An inflationary atmosphere has the potential to create a rising interest rate environment.

Traditional fixed income investments, such as government, corporate and municipal bonds, typically fare poorly in rising interest rate environments.

Smarter investment strategy curtails risks of rising rates

To limit our clients’ exposure to the detrimental effects of rising interest rates, we proactively sought a solution that allowed our clients to maintain a balanced asset allocation including a portion dedicated to fixed income.

To hedge against inflation, we utilize a quality short-term municipal bond manager who employs CPI swaps in his investment strategy, which protects short-term principal.

Likewise, we utilize a manager who invests in high-yield municipal bonds and hedges by shorting Treasuries and corporate bonds.

Clients receive access to catastrophe bonds by way of Coastal Bridge Advisors connections

Through a Coastal Bridge Advisors relationship, we were able to provide our clients access to Catastrophe Bonds, previously available only to large institutions.

This innovative approach has been creatively constructed to preserve our clients’ wealth and maintain the customized asset allocation.