The highest quality government, municipal and corporate bonds with both short and long-term maturities are often used in the portfolios. Your bond holdings can reduce the volatility of the portfolio, and contribute to your desired annual income. In fact, bond yields are often a more attractive investment than stocks. With the right market conditions we will not hesitate to increase a portfolio's bond allocation. In most cases, after-tax yield, income requirements and preservation of capital are the primary considerations in our fixed-income strategy.