Convergent urges bond investors to do the right thing—at the right time

Firm advises on managing the risks of fixed income investing.

WASHINGTON, D.C. – In a recent fixed income investing primer, Convergent Wealth Advisors alerts investors to the approaching challenges and potential troubles ahead for bond investors. As stated by Douglas Wolford, president and COO, “Whether fixed income investors are seeking safety or income, potential dangers are around the corner. Your ‘safe money’ may not be so safe after all.” 

In comments to clients and advisors, John Workman, Convergent’s chief investment strategist, spoke of the challenges the individual fixed income investor is having reaching their return objectives during this historically low yielding time period. Mr. Workman explained that bondholders could feel some of the pain of 2008 again—but this time in what many investors consider their ‘safe’ money. He emphasized that fixed income investing can be risky—especially when interest rates start to rise, and especially at a time where the yield cushion is so thin.

Mr. Workman concluded by saying, “Given current prices, equities have a much higher likelihood of generating returns near historic norms, while that is mathematically impossible for investment grade bonds. We believe that an underweight in fixed income is likely a good strategic stance for the next few years.”

About Convergent Wealth Advisors

Convergent Wealth Advisors is a recognized industry leader in wealth management, advising on over $10 billion in assets (as of December 31, 2012). Convergent provides investment consulting services and customized wealth management solutions to ultra-high net worth individuals and family offices with investable assets of $10M and more. Independence by Convergent™ is a division of Convergent focused on servicing clients with $500,000 and more in investable assets.

Convergent has offices in Washington, DC, Los Angeles, New York, and Portland, OR.

Media Contact: Douglas Wolford | 301.284.1112 | Doug.Wolford@ConvergentWealth.com

Non-deposit investment products are not FDIC insured, are not deposits or other obligations of Convergent Wealth Advisors, are not guaranteed by Convergent Wealth Advisors and involve investment risks, including the possible loss of principal.

Convergent is a majority-owned subsidiary of Convergent Capital Management, which is a subsidiary of City National Corporation (NYSE:CYN), the parent company of City National Bank.