The Geneve Invest Concept
Corporate bonds in focus
A fixed-income cash flow approach with corporate bonds and attractive returns: The main objective of our investment strategy 1.
Corporate bonds have an invaluable advantage: cash flow and return of capital guaranteed by the issuers.
Bonds allow for precise liquidity planning, which is often needed and highly appreciated by investors. The coupon payments and principal repayments promised by issuers provide predictability to meet liquidity needs in a predictable manner, on the premise that issuers are then solvent. It is undoubtedly convenient to know in advance when returns will accrue in the form of interest payments, as this allows us to predict the returns a portfolio can earn in a calendar year. In addition, knowing when repayments will be due allows you to plan wisely - for example, to use the capital for another investment or to finance the purchase of a house or boat. Some of our clients use this cash flow to supplement or replace their income, and some simply appreciate the stability and security that a guaranteed income stream can provide. The security offered by fixed-income securities is also unique: the issuer is obligated to pay interest and repay the principal, and if it fails to do so, the consequences are dramatic. The issuer faces bankruptcy, in which case bondholders can take control of the underlying assets to recover a portion of the original investment.
The Geneve Invest Concept
Corporate bonds with high yield and best risk/return ratio
Systematic focus on niche topics and special factors
Continuous and predictable revenue flow
Legal protection for bondholders: focus on secured senior bonds
Forward-looking & transparent communication with company management
Lower fluctuations in value than shares and advantages of effective diversification
Fixed high bond rates & reduction of yield curve risk.
Additional income by exploiting the yield curve effect