The goal of this strategy is to improve total return and generate higher levels of tax adjusted income for taxable clients. This strategy evaluates relative value across the yield curve between tax exempt municipal bonds and taxable fixed income securities.

The strategy monitors current and historical relationships between municipal bonds, swap spreads and various taxable sectors to ensure that client portfolio contains the highest after tax expected returns and/or yields across the yield curve, based on an individual client’s investment objectives. AAM believes that a successful cross-over strategy requires liquid, high quality municipal bonds that can be efficiently traded to capture attractive market dynamics and/or quickly respond to adverse underwriting results of the client.

To gain a better understanding of the unique tax position of our taxable clients and the extent to which tax exempt income can be added to a client portfolio, AAM incorporates Dynamic Tax Analysis for our cross-over clients.