Community Capital Management Releases White Paper 'A Comparative Analysis: Taxable Municipal Bonds and Corporate Bonds'
Report Identifies How Corporate Bonds Reduce the Diversification Benefits of a Balanced Portfolio and the Taxable Municipal Bond Solution
FT. LAUDERDALE, Fla., June 2 /PRNewswire/ -- Community Capital Management today released a new white paper "A Comparative Analysis: Taxable Municipal Bonds and Corporate Bonds." The report aims to show how taxable municipal bonds are a more ideal complement to balanced portfolios than corporate bonds. The report is available for download at no charge from Community Capital Management's website at http://www.ccmfixedincome.com/whitepaper2.php.
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The 11-page white paper covers:
- Potential flaws in balanced portfolios.
- The negative diversification effects of corporate bonds and the equity market.
- How, relative to corporate bonds, taxable municipal bonds have historically offered: similar returns,
- lower volatility and greater diversification.
"Due to their perceived lower risk and lower correlation to equities, investment grade bonds are traditionally used as a hedge against equity positions in balanced portfolios," said Todd Cohen, President and Chief Investment Officer of Community Capital Management. "However, investors may be exposing themselves to far greater fluctuation in returns since their portfolio may have higher exposure to the corporate capital structure than is optimal."
About Community Capital Management
Established in 1998, Community Capital Management is a privately-held SEC-registered investment adviser based in Fort Lauderdale. Community Capital Management focuses exclusively on providing fixed income investment services to institutional and individual investors. The firm's primary goal is to produce above-average, risk-adjusted returns while providing added diversification and simultaneously having a positive impact on the community and the environment. Its clients include public funds, foundations, financial institutions, faith-based investors, mission-related investors, and individual investors. Community Capital Management has over $1 billion in assets under management and currently offers its investment strategy via a separate account or a mutual fund. For additional information, please visit www.ccmfixedincome.com or call (877) 272-1977.
SOURCE Community Capital Management
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