Institutional Fixed Income
As a part of the BAM alliance we have a fixed income team who can purchase fixed income securities in the secondary market. A 2014 WSJ article cited a S&P Dow Jones Indices study regarding 53,000 municipal and corporate bonds that uncovered large differences in institutional and retail fixed income markets. The study showed an individual investor pays a 1.73% markup on the price of bonds or $1730 more for every $100,000 purchase of bonds than the broker/dealers. The traditional broker/dealer model holds an inventory of bonds that they subsequently mark up in price for a gain and then sell to individuals. With BAM, our fixed income department holds no inventory and as an RIA, legally cannot mark up prices. By being able to operate on an institutional level, we can place broker/dealers in competition with each other to reduce the price paid on bonds as much as possible, roughly .1-.2% . As an RIA upheld to the fiduciary standard, we must purchase securities available to you that meet your suitability and have the lowest cost, i.e. best interest. We took our business model a step further to make it so that what is in your best interest, is available to you by partnering with the BAM alliance.
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