Is it Time for a Bond Swap?

The versatility of bond swapping methods provides ample opportunities for investors to improve their bond portfolios (credit quality, sector, yield) or to opportunistically position for an anticipated change in market conditions (modify extension, duration, call protection, tax-swaps). Professional advice and, in many cases, professional management are key elements of successful financial planning. Our Financial Advisors assist investors in creating diversified fixed income portfolios designed to perform well in unpredictable market environments while addressing the investors specific objectives for level of income and principal preservation. As investors reevaluate their bond portfolios, they should run through a brief list of questions to help determine if it is the right time to consider a bond swap.

1. Are you looking to capture a gain or realize a tax loss?
2. Would you like to improve the credit quality of your portfolio?
3. Do you wish to increase your yield or income?
4. Would you like to have more call protection?
5. Has your tax status changed?
6. What is your current tax bracket?
7. What are your general investment parameters, and have they changed?

An overview of risks and other factors is available from the following sources: What you need to know about the risks of bond investing link referenced above, on finra.org, emma.msrb.org, and investinginbonds.com. Asset allocation and diversification do not ensure a profit or protect against a loss. Investment suitability must be determined for each individual investor.

The author of this material is a Trader in the Fixed Income Department of Raymond James & Associates (RJA), and is not an Analyst. Any opinions expressed may differ from opinions expressed by other departments of RJA and are subject to change without notice. The data and information contained herein was obtained from sources considered to be reliable, but RJA does not guarantee its accuracy and/or completeness. Neither the information nor any opinions expressed constitute a solicitation for the purchase or sale of any security referred to herein. This material may include analysis of sectors, securities and/or derivatives that RJA may have positions, long or short, held proprietarily. RJA or its affiliates may execute transactions which may not be consistent with the reports conclusions. RJA may also have performed investment banking services for the issuers of such securities. Investors should discuss the risks inherent in bonds with their Raymond James Financial Advisor. Past performance is no assurance of future results.

This communication is intended to improve the efficiency with which Financial Advisors obtain information relevant to their clients taxable fixed income holdings. This information should not be construed as a directive from the RJ&A Taxable Fixed Income Department to buy or sell the securities noted above. Prior to transacting in any security, please discuss the suitability, potential returns, and associated risks of the transactions(s) with your client. For additional disclosure information on any security listed in this publication, please contact a Raymond James financial advisor.

The information contained herein has been prepared from sources believed reliable but is not guaranteed by Raymond James & Associates, Inc. (RJA) and is not a complete summary or statement of all available data, nor is it to be construed as an offer to buy or sell any securities referred to herein. Trading ideas expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Investors are urged to obtain and review the relevant documents in their entirety. RJA is providing this communication on the condition that it will not form the primary basis for any investment decision you may make. Furthermore, because these are only trade ideas, investors should assume that RJA will not produce any follow-up. Employees of RJA or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within. RJA and/or its employees involved in the preparation or the issuance of this communication may have positions in the securities discussed herein. Securities identified herein are subject to availability and changes in price. All prices and/or yields are indications for informational purposes only. Additional information is available upon request.