SIPCO's bond portfolio is comprised of assets in a diversified portfolio of investment grade and higher yielding corporate fixed income securities of varying maturities. The portfolio invests primarily in investment grade debt securities rated single A and BBB by the Standard & Poor’s Rating Services (“S&P”)., along with up to 35% of its total assets in higher yielding securities (“junk bonds”) rated BB or higher by Standard & Poor’s Rating Services (“S&P”).  The portfolio provides a higher average of yield of approximately 3-4% above similar duration Treasury securities.  The bond portfolio maintains a ladder of securities generally ranging from 2 to 20 years. 

 

The Bond Portfolio Seeks to Offer:

  •  A high income component above the yield of Treasury bonds

  • A diversified mix of corporate bonds within a wide range of industries and mixed maturities.

  • A protection against principal loss during a period of rising interest rates as our bond holdings are held to maturity.