Dear Friends,
As the year draws to a close, I find great value in pausing to reflect on the past twelve months.
Each year, I encourage my team to take a moment to do the same – reflecting on lessons learned, professional milestones, personal growth, sources of inspiration, or a mix of all these. These reflections not only allow us to appreciate our journeys but also serve as an opportunity to learn from each other to better understand one another.
A few years ago, we began sharing these reflections with you. While this practice may feel unconventional and even a bit strange, we believe it is precisely this transparency that fosters deeper connections and relationships. Sharing our reflections reinforces our commitment to an intentional culture of learning, empathy, partnership, and support.
By offering a glimpse into our thoughts and experiences, we invite you to see the people behind the work – a team bound by a shared passion for growth, learning, and service.
Below, you’ll find the personal reflections from my team. We share these with immense gratitude for the relationships we’ve built with you and a deep sense of humility for the opportunity to serve. Your trust and engagement with us are not taken lightly. We look forward to continuing this journey together. Thank you for being part of our story.
Wishing you a joyful holiday season and a remarkable 2026 ahead.
Let’s make it the best year of our lives.
Warmly,
Gibson
Investment Team
Eric Bernum
Portfolio Manager | Head of Securitized and Preferreds
Keeping Perspective as the World Accelerates
I assume most people hit a point in life where they realize they are no longer in touch with what is cool, what the cutting-edge of society is focused on, or what all these random memes actually mean. I remember cringing at my father saying “groovy”, or when I was fresh out of college, and I couldn’t understand why my PMs didn’t understand what was so big about “this Napster” thing, or why an iPod was so intriguing. Fast forward roughly 20 years, and I have recently come to the harsh realization that I’m one of those people.
Beyond the eye rolls from my high schoolers when I ask how “6-7” is supposed to be funny, I am now finding myself antiquated even professionally as cryptocurrency and its derivations, same day options trading, “predictive markets”, reddit investment oracles and social media investment experts, AI investment bots, and other non-traditional ways of investing begin to take off. Beyond my own personal feelings of becoming antiquated and pondering my own mortality, I think it’s exciting to see what feels like a major cusp of innovation across all of society. Putting aside the debate on the morality of individual topics, the potential societal fallout, or what the race for dopamine hits pushes people to do, I think we must step back and be amazed by humanity’s drive to explore new frontiers and innovate.
Looking back on the last year and all the change and exciting potential that lies in store for humanity, I am thankful to be sitting here, a small contributor to this world, even if it is quickly leaving me behind. Now, I just have to find an AI-enabled smart TV that I can play my VCR tape collection on.
Jonathan Aal
Portfolio Manager | Head of Investment Grade Credit Research
We are always sowing seeds.
Earlier this year, a friend of mine made that statement, and it inevitably rooted itself deep within my mind, like a germinating fruit tree. I spent many of my formative years on my grandfather’s farm. Being connected to a life of agriculture, I have always thought of planting seeds as a very intentional process. My blind spot was a failure to recognize that we are always planting seeds, and therefore also planting seeds unwittingly, good ones and bad ones.
Retrospect is a great illuminator because seeds of the past have had time to sprout and grow into great oak trees where life within its branches abounds, or fields of weeds where all is sucked dry. The understanding, at least for me, that we are always planting seeds has helped shorten, so to speak, the distance between far-out retrospective moments and the present.
As an investor, this concept resonates—portfolios are an aggregation of many seeds, from process, to research, to communication, dots connected, risk unearthed, and ultimately investments planted and harvested. Furthermore, as above, we are always sowing, and our aim is to be intentional in every aspect of our investment process.
In review of this year, Investment Grade Corporate Credit has returned 7.23% YTD*. Over the same period, IG Corporate spreads are 4bps wider. Taken together, a few things can be inferred from these two bits of information, but overall, they speak of the many factors that can come together to create positive total return tailwinds for fixed income investors.
Coming into 2025 the yield on IG Corporate Credit was over 5.30%** and comparing this to its duration profile, the breakeven of the asset class was 78bps**. As seeds in the ground for investors at the start of the year, they turned out to be attractive tailwinds and resiliency measures for the asset class.
Assessing the true value of something in the present isn’t always easy. Like most seeds that go into the ground, the fruit or thistles from today’s actions, habits, words, and thoughts may not become visible for months, years, or decades, but eventually they will be on display. Simply knowing that we are always planting seeds, intentionally and otherwise, has been a helpful reminder—altering my actions and the way I view my responsibility as a seed sower, both personally and professionally.
Here’s to an intentionally planted and fruitfully harvested 2026.
*Total Return and Spread data as of 12/15/2025.
**1/2/2025 2025 YTW and Breakeven data
Garrett Olson
Portfolio Manager | Head of Leveraged Finance Credit Research
Everything, Everywhere, All at Once
Markets in 2025 remind me of the title to the 2022 movie “Everything, Everywhere, All at Once.” Strongly positive YTD index returns across credit and equities mask a year where it felt like we experienced every potential market scenario. There were days when we discussed the potential for a tariff-driven economic collapse, mass defaults, and a complete market meltdown. There were days when the market channeled the 2021 meme-stock craze, when Fartcoin reached a market cap of over $2bn, and when anything AI-related was going to the moon. We saw heightened government intervention and a push for deregulation. We saw increased geopolitical tensions alongside a drive for peace. We saw intense volatility: the S&P 500 Index fell by over 10% in just two days before rallying by nearly 10% in a single trading day (the Nasdaq Composite Index was up over 12%). But we also saw range-bound markets and equity indices setting consistent new all-time highs. Finally, we saw the emergence of an AI-driven capex supercycle that both mimics past cycles and has the potential to be a defining moment in market, economic, and human history. We have said for some time that cycle speeds have been increasing, but this year it felt like we lived through an entire investing career.
Zooming in on the Leveraged Finance markets, one clear takeaway from 2025 is that when spreads are low, the margin for error is small. Earnings season reactions seem to have been defined by marginally rewarded beats vs. expectations in individual security returns, while misses are severely punished. It is hard for me to recall another period in my career when we saw so many high-yield (HY) bonds down 5, 10, and sometimes over 20 points on earnings misses. Concentrating on the higher quality part of the HY market, where fundamental spread downside is more limited, has been a winning strategy- CCC bonds have materially underperformed BB’s, and the Ca to D US High Yield Index has lagged severely. While avoiding big mistakes is always critical to generating strong fixed income returns, we feel that this dynamic is even more important in the current market, where spread compensation is historically low and expectations generally incorporate benign outlooks. Reflecting on 2025, we are revisiting our risk and underwriting frameworks for high-yield bonds and leveraged loans, as well as our sell discipline, to protect investor capital and outperform in tight spread markets.
Away from markets, 2025 was exciting and dynamic on the personal and professional front. I have commented before that being a parent teaches you so many different lessons (I have two girls under 3 years old with a third on the way), but one that was highlighted recently is simply to “stay present and enjoy the ride.” Having children forces you to live in the present moment, both from a daily survival perspective and given the fact that they are changing so rapidly that they can be completely different people in weeks or months, let alone years. That said, I still find myself and other parents remarking, “I can’t wait until they…” usually followed by concepts related to sleeping through the night, achieving the next milestone, or developing some new behavioral pattern. But so often the “I can’t wait until they…” comment turns into the “I miss how they…” referring to actions that either were deemed unhelpful at the time or weren’t appreciated for how fleeting they were. Whatever the case, it is so clear that the present moment is all we have, where life unfolds, and that our collective experience is just a bunch of present moments spread out over a lifetime.
My kids are changing before my eyes, and I will do my best to appreciate them in this moment, without expectation or judgment. Our business is scaling rapidly, and looking ahead, the prospects are beyond exciting, but I will do my best to serve clients and teammates at this moment without fixating on the road behind or ahead. Markets are dynamic, and the speed of cycles is daunting. The future is both bright and terrifying, but I will do my best to make good decisions today and compound them into strong results. Cheers to 2025, and to continuing to learn and grow together in 2026. May we all stay present and enjoy the ride.
Zach Tucker
Head of Trading
What Just Happened? Nothing To See Here.
Entering 2025 with Trump 2.0 and the sense of “unfinished business with a mandate and congressional support”, one could be excused for believing the amplitude of market moves would “trump” those of past years, perhaps dating even to pre-Trump 1.0. Some of our previous musings contemplated a permanent shift to shorter market cycles and reaction mechanisms that were more fast-Algo than calm-Buffett. However, popping the hood on market data reveals a tumultuous nameplate year with an oddly different experience: equities are having another banner year, interest rates (as measured by the 10-year US Treasury) are appreciably lower amid a multi-year inflation cycle, and corporate credit spread volatility has generally underwhelmed.
To the brass tacks – the S&P 500 total return, including dividends, was 17.06% YTD*, the 10-year UST stands at 4.17% (as of 12/15/25) and 55 bps lower in yield YTD, and the Bloomberg US Aggregate Corporate OAS Index sits near its starting level for the year at 79**. Given a hundred at-bats, my sense is that fewer than ten guesses would have “hit” the direction and relative amplitude of these moves in professional circles. Simply stated, given the setup…we didn’t see this coming.
Suffice to say, the data does not confirm what felt like a volatile year. Yes, the first week of April saw significant market volatility, with echoes of previous crises. But even then, the trading desk mentality was more “we have seen this before, and it makes sense” than a paradigm shift or a transition to a market in peril. Outside of that April week, LUACOAS had one, yes, one day with a move greater than 4 basis points. While the final (or even middle chapters) of this era have yet to be written, for now the self-diagnosis returns…Keep Calm and Carry On.
On a personal note, and to add some lighthearted perspective, the most heated bear-bull debate on the home front was unexpected: should we, as parents, allow our 6-year-old daughter to watch K-pop Demon Hunters? Perhaps it was the heart-throb texting by the demon-hunting “girl band” members over the chiseled abdominal muscles of the demon “boy band” members that led us to the crux of our decision – default in…or opt out. Please email if you have an opinion.
* S&P 500 total return data as of 12/15/25.
** Bloomberg US Aggregate Corporate OAS Index as of 12/15/25.
William McCurdy
Credit Analyst | Quantitative Analyst | Trader
Depth over Breadth
Last year, I reflected on presence – how to detach from the future in my personal life while working in a profession built around it. This year, I reflect on how choosing fewer things, done extremely well, has added depth to many experiences in my life and shaped a more deliberate, focused approach to how I show up in my work and in my life. This mindset has set me on a more defined, yet still never-ending, path to becoming a better investor and a better person.
In my work, I’ve become more aware of the balance required between breadth and depth. Technology now gives us extraordinary breadth – real-time data, powerful tools, and the ability to monitor a wide universe of credits with efficiency that simply didn’t exist a few years ago. But while technology can provide the map, only a skilled investor can navigate the terrain with conviction. The heart of our process still lies in bottom-up analysis, curiosity, and the discipline to understand businesses deeply enough to see their risks and opportunities clearly. This year, tight spreads reinforced the importance of depth. A quick scan of the “map” may reveal peaks (wide spreads) and valleys (tight spreads), but deeper work often shows the peaks to be unstable, and the valleys shaped by strong prevailing forces that can push them even lower (spreads even tighter). Strengthening these analytical muscles while staying engaged with advancing technology is central to our goal of being the best in credit.
In my personal life, this idea of ‘depth over breadth’ showed up in a quieter way. Reflecting on my first full year of marriage, more and more I find myself appreciating the small, ordinary moments that are easy to overlook in a fast-moving life full of plans – coffee with my wife on a Saturday morning, a few games of cards (we prefer Gin Rummy, or Hearts with a group of four), or even the simple consistency of shared routines. These moments have shown me that filling our lives with plans, things, or vacations isn’t what creates happiness; real richness comes from being fully present for the everyday moments that quietly shape a life.
Bryan Owen
Credit Analyst | Trader
A Year of Resilience: Markets, Risk, and What Truly Matters
From a market’s perspective, it’s hard to find a better word than resilient to describe the past year. Early on, volatility injected real uncertainty into risk assets before markets resumed their steady climb up the wall of worry. Pullbacks were shallow, and every bout of equity weakness or spread widening proved to be a buying opportunity. That strategy has been consistently rewarded, creating its own reinforcing feedback loop.
Corporate balance sheets and margins remain strong, providing ample flexibility for capital deployment. While we’ve seen more value-seeking and selective behavior, the consumer continues to outperform expectations. As a result, equities have notched multiple all-time highs, and credit spreads sit near all-time tights—hovering just off the 1st-percentile for both IG and HY over the last 30 years.
At the same time, bubble concerns, cracks in private credit, the consumer, fiscal deficits, and massive capex funding needs continue to keep investors on edge. Markets, like life, always provide something to worry about. This isn’t inherently good or bad—it’s simply human psychology. While many believe risk management begins with obsessing over what could go wrong, it’s equally important to recognize what could go right. Statistically, the latter tends to win.
Volatility and fear are permanent fixtures in markets. How you navigate that uncertainty is what separates the good from the great. To borrow the words of Rick Reider, “we aren’t in the business of being right; we’re in the business of generating returns for clients”. Understanding that distinction is central to effective risk management. The wall of worry has no summit—it’s climbed in perpetuity.
As we close out 2025, I’m reminded of the importance of relationships and connection. My grandma was able to join us for what will likely be our last Thanksgiving together. She was diagnosed with Alzheimer’s earlier this year. She has been a constant, meaningful presence in my life. While the cognitive decline is real, her warmth, pride, and elegance were still there. Being surrounded by family allowed moments of her true self to shine through. It made the week incredibly special for all of us.
Life has a way of refocusing our priorities. Investing time in the people who matter and pursuing the things you care deeply about are what brings meaning. Even now, Grandma Kim hasn’t lost her ability to remind me of what’s truly important. I write this with immense gratitude for the challenges of 2025—and even more gratitude for the friends, family, and teammates at Smith Capital who helped me navigate them. Cheers to a great 2025, and an even better 2026.
Markus Manly
Credit Analyst | Macro & Rates Analyst
From the Trees to the Forest
During this annual review process, I tend to reflect on a common theme that relates to both market dynamics and my own personal life from the recent year. Last year, it was the power of story. While I still find that theme empowering, this period required a unique metaphor. As my role has fully shifted from credit to macro and rates strategy, I have begun to learn to see the world from a new perspective: looking beyond the trees to see the entire forest. In 2025, there were plenty of trees to obscure the view. Between erratic tariff policy, threats to Fed Independence, the longest government shutdown in history, and AI enthusiasm/fears, this year did not unfold in a straight line. For all the noise created throughout the year, however, it’s important to acknowledge the fact that the Trump administration did actually deliver on many of its communicated policy agendas. Stricter border enforcement, reshaping global trade relationships, and passing key tax legislation were all objectives touted on the campaign trail that came to fruition. While there will undoubtedly be plenty of commotion to distract investors next year, I think a few key themes can serve as a helpful guidepost. Top officials from the administration have referenced stronger economic growth as a remedy for the country’s mounting fiscal burden. After “kitchen-sinking” growth in 2025 with trade and immigration shocks, focus will likely turn to an agenda of spurring economic activity. Whether this is in the form of additional support for the lower-income cohorts, greater coordination with monetary policy for lower rates, or ensuring domestic players are the longer-term winners of the AI arms race, policies likely will be centered on US dominance. This directional alignment will be key to navigating a conceivably dense forest in 2026.
2025 was defined by an intentional calibration of my personal compass as well. It’s easy to get caught up in the constant distraction of day-to-day life, so much so that an entire year passes in a blink. Avoiding this passive monotony in life was as simple as identifying the forest (the people and things that bring the greatest joy) and prioritizing these above all else. Playing golf and tennis, travelling, and attending concerts with the closest people in my life are what defined my year, and I’m extremely fortunate to have had so many incredible experiences. Several of my fondest memories from this past year included members of the Smith Capital team, a relationship which I have come to recognize as unique or even strange in a typical work environment. However, the intersection of our personal and professional lives enhances the quality of both and remains Smith Capital’s greatest asset. Even though we have grown significantly in a short period of time, the quality of our internal relationships has strengthened. As I look ahead, my goal is simply to continue keeping the forest in view, staying anchored in the people, experiences, and priorities that truly make life meaningful. Everything else is just the trees.
Jake Jones
Credit Analyst
Supply Shock
One of the dominant drivers for risk assets in the back half of 2025 has been the acceleration of the initial AI investment cycle. While the cycle began prior to this year, 2025 marks a key inflection point where the scale of hyperscaler capital expenditures now necessitates a funding pivot. Internal cash generation shortfalls mean future AI investments will be funded with external financing, thus bringing the investment-grade debt markets to the forefront of the AI infrastructure build-out.
The market response to this evolving narrative has been overwhelmingly negative thus far. Recent AI issuers have included Alphabet, Amazon, and Meta, all AA-rated. Net leverage for each of these companies is below 1.0x, with debt making up less than 10% of the total enterprise value. That being said, when each of these companies announced their first large AI-related bond deals, spreads sold off +10 to +15 basis points across the curve. These moves appeared to be outsized considering the high-quality fundamentals, but it’s critical to consider the impact net supply expectations have on current valuations.
The rise of AI debt issuance this year has illustrated a core tenet that, upon reflection, defined the tone of the market and created opportunity: technicals (market supply and demand) can impact valuations just as significantly as issuer fundamentals. As analysts, we are shaped by our focus on the fundamentals, but as investors, it’s equally important to understand the structure and flow of the market and its associated impact on valuations. This takes more time to learn and comes with time in the game, but it is a skill that can help spot dislocation in valuations based on near-term changes in market function. For this, I am grateful to have been involved in credit markets in 2025, learning to assign more weight to changing market technicals for future years in my analysis.
This concept is particularly important now as the AI investment cycle will prove to be one of the largest economic transformations in our lifetime, having an impact on both variables, fundamentals, and technicals. Good investors will consider both fundamentals and market technicals to understand the merits and risks of an investment opportunity. Great investors, however, have a market intuition that puts those two factors into context, allowing one to actively manage through volatility while positioning for long-term success. This cycle is no different.
Mason Boh
Credit Analyst
Staying Flexible
Things change; this is a fact of life, and flexibility becomes essential in how we respond to that reality. As I reflect on this year, what stands out is the number of personal and professional transitions that occurred at once. Starting a new role at Smith Capital, the wonderful experience of getting married, splitting time between New Jersey and Denver, moving twice, and adjusting to new family dynamics all required me to adapt quickly. Each change brought its own challenges but also pushed me to step outside familiar patterns and rethink how I operate. I’ve learned that flexibility can be a conscious mindset that allows you to learn, broaden your perspective, and make better decisions.
These lessons can also translate directly into markets. Investing demands a process that is disciplined yet adaptable, open to new information, and willing to evolve as conditions shift. This year’s volatility in April highlighted how valuable it is to stay nimble, question assumptions, and respond quickly to changing dynamics. Rigidity can lose you opportunities, while flexibility can help you capitalize on them.
As I move into 2026, I want to carry forward this mindset. Embracing change with open-mindedness is something that can benefit my personal life, my professional development, and my effectiveness as an investor. My goal is to let the lessons from this year shape a 2026 defined by growth, clarity, and a more flexible approach to whatever comes next.
Ted Engelen
Fixed Income Trader
Strategic Risk-Taking
Reflecting on the past year, I keep coming back to the idea of strategic risk-taking—the disciplined, deliberate decision-making that forms the basis of our approach to fixed income investing at Smith Capital Investors. My own path is guided by this principle. To build on my experience and switch fields, I made the commitment last year to step away from a stable career in commodities trading and pursue a Master of Science in Finance at the University of Colorado Boulder. It was a challenging choice for my family and me, but it was a calculated investment that affirmed a core belief: long-term growth stems from informed conviction and investing in yourself and your abilities. I knew that if I worked hard and gave myself as many opportunities as possible in my program, it would lead to great outcomes.
This academic pursuit ultimately brought me into the orbit of Smith Capital. I quickly found a culture that matched my own values. I was drawn immediately to the firm’s commitment to disciplined investing and the intentional, collaborative environment focused on serving clients. The opportunity to join the team, due in no small part to a supportive alumni network, quickly confirmed this was the right place for me. I believe this strong alignment, my personal investment in growth through thoughtful risk-taking, is what I bring to our team every day in managing capital on behalf of our clients.
Dante Dino
Credit Analyst
Opportunity is Everywhere
A year ago, I thought opportunity meant achievement: landing a job, reaching milestones, checking boxes. Now, I understand it lives in much smaller, often overlooked, moments. While I am grateful to be working here full-time after two years as an intern, my senior year of college taught me that true opportunity is found in the things I once assumed would never disappear: graduating alongside lifelong friends, moving my body freely, hearing my family’s voices, sharing meals, and walking without hesitation. What once felt ordinary now feels like the blessing and opportunity it truly is.
The first couple of months of my senior year were defined by a serious injury that left me with five broken bones across my legs and feet. Having to go to Buff games in a wheelchair instead of jumping around in the student section with my friends was not how I had imagined spending my final year of college. However, it became an unexpected opportunity to reshape my perspective on gratitude and what it truly means to recognize the opportunities around me. I tried to be intentional about the story I told myself, choosing to focus not on what I had lost, but on what this experience allowed me to see. Instead of viewing myself as unlucky, I searched for the hidden opportunities within my recovery process. I thought about all the people who never get the chance to attend college, let alone a college football game, and how many would cherish the opportunity to be supported by friends as caring and fun as mine. Rather than pouting about the loss of my final college ski season, I leaned into the chance to binge-watch Game of Thrones and finally make time for reading. I approached my situation with as much positivity as possible, not only for my own sake, but to remind those around me that a setback does not require a victim mentality. Though my movement was limited, my connection to others was not. I could call the people who loved me, and I had the chance to truly get to know someone I may never have connected with as deeply if I were always out and about like I had originally planned.
As I fast forward a little more than a year later, I feel overwhelmed with even more opportunities and grateful for all those opportunities that my injury and recovery brought me in 2025. I am now over six months into my dream job, and the opportunity to grow, learn, and pursue my passion each day continues to energize me. Additionally, I have even more confidence in my resilience, determination, and discipline. After multiple surgeries and months of dedicated physical therapy, I have regained the opportunity to run, to play the sports I love, and to look forward to ski season with pure excitement. The incredible woman I got to know while my movement was limited is now my girlfriend, and she has become one of the greatest sources of support and joy in my life. What once felt like a setback revealed itself as a turning point filled with opportunities. So, when I look back on this past year, I am incredibly grateful for all the opportunities I’ve been blessed with, and for the many opportunities ahead!
Jamie Smith
Credit Analyst
Growing Through Volatility: My First Eight Months in the Market
Having only been working in the market for five months, I feel like I’ve already lived through multiple cycles of chaos. From the AI boom to a Bitcoin frenzy, a renewed gold rush, 100% tariffs on China, and the longest government shutdown in history, the amount of global tension and macro volatility has been astonishing. Add in massive AI-infrastructure projects, a proposed transcontinental railroad, and other multibillion-dollar deals, it has been more than I ever imagined I would experience this early in my career. The volatility has been a gift. It has forced me to think deeply about how to act under uncertainty, how to stay grounded, and how to make good decisions when conditions move fast. This year marks the beginning of my investing journey, and I am incredibly grateful for the seat I am in during such a wild and exciting time in the market.
Making the transition from college into full-time work was not easy, but it has been one of the most rewarding experiences of my life. This has been the most exciting and demanding year I’ve ever had, and I am falling in love with the work. I’ve seen more personal growth in the past several months than at any other time in my life. Consistency and discipline have compounded in ways I’ve never experienced before. I’ve been given real responsibility and accountability, and that has pushed me to dial in the fundamentals, both in my work and in my personal health. I am in the best shape of my life. I’m learning from incredible mentors, and as I head into 2026, my goal is to become an expert in my sectors and to dominate every opportunity that comes my way.
I feel incredibly fortunate to have joined the firm at such a transformative moment. Since starting as an intern in the summer of 2023, I’ve watched the business grow from roughly $4 billion in assets under management to nearly $13 billion. The scale of that evolution is hard to fully comprehend and witnessing it up close has been exciting. What stands out most is how we have maintained the culture of a small, tight-knit firm while operating at the level of a much larger organization. The culture: intentional, focused, and performance-driven, is what I believe fuels our success and is what I’m leaning on as we enter Chapter Two of this business.
Melanie Nun
Quantitative Analyst
Get happy
Once upon a time, I was a determined young athlete with a baffling season-ending injury. In a storyline lifted straight from a corny trilogy or Greek epic, I was miraculously granted an audience with a legendary coach that required a heroic journey to the top of a mountain – on crutches. I (barely) survived the journey and found myself sitting in front of the icon, wide-eyed, pen and paper in slightly trembling hand, ready to soak in every drop of knowledge on rehab programs, nutrition plans, and cross-training exercises that the wisdom of the ages could offer.
The wizened legend peered at me through graying hair and tiny glasses, shrugged, and said, “You just need to get happy”. And that was it.
Elite athletes often look back on their careers and find that the greatest successes came not from a final tweak to a training regimen or an additional set of 5am free throws, but from the seasons when they were happiest in aspects seemingly unrelated to athletics. Happiness begets motivation, and motivation is a far more sustainable source of power than discipline alone, even for the most obsessed athletes.
For me, 2025 was a year of relentless focus on how I could align my life to best “get happy”. I’m so grateful to have found a talented, ambitious, competitive team that’s obsessed with protecting and growing our clients’ hard-earned wealth – and that this team happens to be close to my beloved mountains and family. I am even more grateful that this team understands happiness is the engine behind every truly spectacular result – and this team strives to be truly spectacular.
Adam Steele
Securitized Analyst
A Little Change Will Do You Good
As I reflect on 2025, one transition stands out as the most significant for me both personally and professionally: joining Smith Capital Investors. After nearly a decade at my previous firm, where I built my career and established strong relationships across the Street, the decision to move on was not easy. However, after meeting with individuals across Smith Capital, from the Leadership Team to Investments, Business Excellence, and Operations, as well as many thoughtful conversations with Gibson, it became clear that this was the right next step.
Now, several months in, I am confident that this decision has been overwhelmingly positive. The culture at Smith Capital is truly exceptional. A shared commitment to excellence and performance is evident throughout the organization, and the environment fosters collaboration, idea generation, and continuous improvement. It is energizing to be part of a team that pushes one another to achieve the highest standards. I firmly believe we are building something special here, and I am grateful to be part of that effort.
Turning to the markets, Agency MBS is on track for a strong year. As of November 25, the Bloomberg US Mortgage-Backed Securities Index (LUMSTRUU Index) delivered an 8.47% total return year-to-date, including 127 basis points of excess return. This performance has been supported by a steady decline in rate volatility since early April and solid demand from money managers, REITs, insurance companies, and the GSEs, while the Federal Reserve and the banking sector have remained largely on the sidelines.
As we look ahead to 2026, valuations across the sector remain tight, and forward returns will largely depend on the path of interest rates and investor positioning. In this environment, we expect to maintain a tactical posture while working to mitigate some of the negative convexity that has emerged in the market. We plan to do so through disciplined security selection and by rotating into more call-protected collateral where appropriate.
Business Excellence Team
Carys Murphy
Chief of Staff | Head of Strategic Initiatives
From Stumbles to Strategy: Year One at Smith Capital
What a year indeed! As I look back on my first full lap around the sun at Smith Capital, I can’t help but laugh at how confidently I walked in, thinking I knew exactly what I was getting myself into. Gibson’s glowing description of Smith Capital sounded hyperbolic at best, like enthusiastic marketing for a new social club. But it turns out he was right. This place is different. It’s a rare mix of kindness, intensity, curiosity, debate, and genuine connection. It’s a place where you’re expected to work hard, think hard, play hard, and occasionally fall flat on your face. And this past year, I’ve done plenty of that. But every stumble came with support, humor, and surprisingly often a lesson I didn’t realize I needed.
Somewhere along the way, between the market deep dives, the bewildering array of bond vernacular, and the “can you explain that one more time” moments, I realized just how much I had actually learned. Not only about the firm’s history, our partners, or the nuances of legal agreements, but about myself and what energizes me, what I want to work on, and what I love about the strange blend of big-picture thinking and nitty-gritty problem-solving this job demands. There’s something oddly satisfying about toggling between the 30,000-foot view and the microscopic details, like being both the architect and the electrician of a building that’s constantly under construction… which, fittingly, I got a taste of during our move to the new office.
So as 2025 wraps up, I’m grateful: grateful for work that fits me, for people who challenge and support me, for the mistakes that taught me, and for the unexpected joy found even in the messiest moments. And if this year was any indication, I’m in for another year filled with more learning, more connection, and probably a few more face plants… but at least now I know how to land a little more gracefully.
Kendall Katskee
Chief Financial Officer | Human Resources Director
Does Accounting = Happiness?
Apparently, it does. Tomorrow is my one-year anniversary at Smith Capital, and this entire experience has made me SO happy! Maybe accountants are just like that? But I’ve had so much unexpected fun, learned new things about myself, taken on daunting challenges, and been inspired by the talent and intellect that surrounds me every day. It’s definitely not what I anticipated at this juncture of my career. Maybe Smith Capital was a leap of faith, but I trusted Gibson and never looked back.
So, day one, I loaded up the coffee maker, set my alarm for 5:30am, and took off for work in the dark, not knowing how it would all go down. One year removed, I can honestly say it has been one of the most interesting and challenging years of my life. Shoot, even learning Microsoft Teams was no small feat; technology and business is ever-changing. Financials may be black and white but understanding the nuances of how companies operate requires patience, curiosity, and a commitment to constant learning. And, I had forgotten how much fun learning can be.
As I’ve grown into my role, I’ve loved discovering how Smith Capital works and getting to know the incredible group of individuals who make it special. We have important work ahead. Costs are rising, markets are unpredictable and budgets must be met. There is always more to do and more to learn, but when you’re surrounded by such an exceptional team, the office becomes a place where challenges turn into opportunities — and even hard days can bring happiness.
Mike Mulder
Chief Compliance Officer
Halftime Adjustments
I often use sports as a microcosm for life, but maybe halftime is a bit premature here. After spending more than 15 years with the same firm, I embraced an incredible opportunity to join Smith Capital Investors in 2025.
By nature, I’m someone who values routine and tends to be apprehensive about change. Yet every time I’ve stepped outside my professional or personal comfort zone, whether by choice or circumstance, it has led to some of the most rewarding outcomes in my life, leaving me better and with a broader perspective. This move has been no exception.
As 2025 draws to a close, I’m energized by the possibilities ahead and deeply appreciative of the outstanding team at Smith Capital that has built such a strong foundation for us to grow upon.
Wade Clouse
Head of Investment Operations
Transitions
This year has brought meaningful transitions for our family. Two of our kids are thriving in college, one preparing to graduate and begin a career in teaching, and the other pursuing his degree in business. Our youngest, now a high school junior, has spent the semester interning at Outdoor Lab, a program that offers sixth-graders hands-on experiences in nature. His schedule—home on weekends and back to the program during the week gave my wife and me a preview of what life as empty nesters might look like. It’s amazing how quickly the pace shifts from managing school and sports schedules, taxiing kids around, to a suddenly quiet house, and while we longed for that calm, we now treasure every chance to catch up with our kids. While the holidays can be busy and stressful, they remind us that the best part is slowing down and spending time together. Watching our children grow and enjoy each other’s company is truly one of life’s greatest joys, and it fills us with gratitude and excitement for what’s ahead.
On the business side, this year has been transformative for Smith Capital as well. We were thrilled to welcome First Trust as a new partner and assume the role of sub-advisor on two of their funds—a milestone that reflects our shared commitment to growth and innovation. While markets have been dynamic, driven by both excitement and caution around artificial intelligence, we see these shifts as opportunities to adapt and lead. As we look ahead to 2025, our focus remains on strengthening client relationships and embracing strategies that position us, our clients, and business partners for long-term success. Change can be challenging, but it also opens doors to new possibilities—and we’re energized by what lies ahead. As Gibson likes to say, what can go right?
Andrew Casner
Head of Technology | Lead Software Engineer
More Than a Team
Last year, I wrote about the joy of getting engaged and the intention behind building a life with someone. This year, that chapter continued as we got married. The day was meaningful not just for what it represented personally, but for what it revealed about the community around us. Seeing so many people from Smith Capital Investors at the wedding did not surprise me, but it stayed with me. It felt natural to look around and see colleagues standing right alongside lifelong friends, not in separate groups but fully intermingled. That blend did not happen by accident. It reflects the way relationships at Smith Capital grow, evolve, and take on a life of their own.
What stood out was not a new realization but a powerful reminder of something I have believed since joining the firm. Smith Capital is special because the distinction between friends and colleagues often fades in the best possible way. The culture does not force a calculation between work and life. Instead, it creates harmony where the people you work with become the people who show up for you, celebrate with you, and support you through the moments that matter. The same teammates I collaborate with every day were part of one of the most important days of my life, and they were there out of genuine care rather than obligation. That kind of connection is rare, and it shapes the way we work and the way we show up for one another.
Reflecting on the year, the wedding became the perfect lens for what this season has meant. It highlighted the trust, consistency, and shared purpose that define this team, and it reaffirmed the friendships that form so naturally here. Marriage has brought a new sense of grounding and purpose, and it means a great deal to step into that chapter with a community that already feels intertwined with our lives. It is not about discovering something new. It is about appreciating once again how fortunate we are to work in a place where colleagues become friends, and where personal and professional life do not collide but come together.
Nate Palmer
Software Engineer | Portfolio Analytics
A Year of Growth and Synchronized Teamwork
This year has been one of the most meaningful periods of growth in my career. After spending the previous year adjusting to the unique pace and structure of finance, this year was defined by gaining confidence, building momentum, and finding a rhythm that has elevated the quality of my work. A major part of this progress has been developing a highly synchronized partnership with Drew, who serves as the Head of Technology and Lead Software Engineer. Working alongside him has transformed the way we approach problems, the speed at which we deliver solutions, and the clarity we bring to the engineering process.
As I became more familiar with the systems, workflows, and responsibilities of the firm, engineering began to feel more intuitive. Concepts that once required significant effort began to feel natural, and the connection between technology and the needs of the business became much clearer. What stands out most is how this deeper understanding allowed Drew and me to operate as a fully aligned team. We communicate quickly, anticipate each other’s thinking, and approach challenges with shared confidence. Our teamwork has turned complex situations into opportunities to build cleaner, faster, and more reliable solutions.
Throughout the year, we completed multiple major projects that strengthened the firm and showcased how efficiently we now operate. We developed a rhythm where design discussions move with purpose, debugging is more creative, and feature development is completed with far less friction. Instead of reacting to issues, we work proactively and with a shared sense of ownership. This synchronized approach has allowed us to maintain both speed and quality in everything we delivered.
Looking back, this year represents a shift from learning to performing at a consistently high level. The work we completed, the systems we improved, and the problems we solved reflect how much we have grown as engineers and as a unified team. Working with Drew has shown me what it feels like to operate in an environment where ideas flow naturally, challenges are met with confidence, and teamwork becomes one of our strongest advantages.
This year has strengthened my skills, expanded my perspective, and helped build a partnership that I am genuinely proud of. I am excited to continue building on this momentum and to keep evolving together with Drew as we take on even more ambitious goals in the coming year.
Charlie Smith
Operations Associate
Moving Around
This year at Smith Capital, I took on a much-expanded role. Previously, my goal was to learn as much about the firm and find the cracks where help was needed. I found a recurring theme: more IT help.
Over the past year, I have been trying to further refine my IT skills, specifically on the hardware side. I started by building my own computer and then tried to jump in on any tech-related issues the investment team had. While I still have a lot to learn, I think I have started to refine my skills and learned multiple different tools.
One project that helped with my progression was moving offices to the SugarCube building. We decided to fully upgrade everyone’s setups to create the best work environment possible. Initially, I thought the move would be standard from a hardware perspective. Things never go as planned, though. After almost 2 months, I’m confident in saying that the new office space has significantly improved from the previous one. I learned multiple new skills, some more useful than others, but I am very proud of the work we have done.
Last year, I wrote about the importance of routine and keeping the water wheel moving. I’m proud to say I think I have improved on this. I’ve joined a tennis league, set a more consistent bedtime, and am eating much healthier. I moved into a house with my girlfriend of five years, and we couldn’t be happier. The plan for next year is to add a dog to the family. Overall, this year was a tremendous success in my book.
Halley Burkhardt
Executive Assistant
Finding Clarity in a Year of Chaos
2025 can best be summarized with one word- chaos. Joining the team just seven months ago while raising an “active” toddler, housing a young adult cousin, and maintaining operations at a local business with my husband has been a storm of chaos. In many ways, these worlds- my personal and professional- mirror each other. Every day looks a little different than the last, priorities are constantly shifting, and we’re all figuring it out as we go. Within the chaos, I have found resilience and endless joy.
Early on, in one of our infamous Friday meetings, I shared that my best holiday memories are when all my extended family were together. There is a distinct parallel between the feeling those memories evoke and being with everyone at Smith Capital. We share many laughs, commiserate over raising young children (while others remind us to slow down and enjoy the chaos of said little ones), and watch those beginning the journey of growing their families.
My goal for 2026 is to operate with ease and clarity. As this year wraps up, I am focused on pinpointing areas that need refinement, building consistency, and establishing structure so that we can hit the ground running in January.
“I may not have gone where I intended to go, but I think I have ended up where I needed to be.” – Douglas Adams
Andrew Branan
Operations Associate
Motion
2025 has been a year defined by motion. Finishing my degree at San Diego State University in May set my professional life into motion. I moved back to Boulder, Colorado, and stepped into my role at Smith Capital Investors a couple of months later. It was a lot to take in at once, but the growth that came from it has been worth every bit of discomfort.
Amid all the shifting pieces, I realized how grounding it can be to show up for myself in simple, consistent ways. Going to the gym every day, spending more time with family, and getting enough sleep made everything else feel more manageable and far less stressful. Keeping these routines gave me something steady to lean on when everything else felt new.
As I head into 2026, I hope to maintain these habits and continue building even healthier ones. I’m extremely thankful for everything 2025 brought my way, especially the chance to join Smith Capital Investors and the relationships I’ve begun to build here.
Business Development Team
Michael Scherer
Co-Head of Business Development
Sacrifice
I spent a lot of time this year thinking about sacrifice. I think it’s somewhat of a lost art in society. I think most people, me included, want it all. Work- most of us want fulfillment and wealth. Family- most of us want to be around as much as possible. Health- most of us want to feel and look fit and strong. Sleep. Friends. Fun. Give me it all!
I could keep going down this path for some time. I have come to believe, however, that it is impossible to have it all and to be exceptional at anything. I have learned that I must make sacrifices to remain even above average at home and at work.
I have two primary priorities: being available to my children and helping make Smith Capital the best firm in the world. Tertiary is my fitness, as I commit to at least 30 minutes of exercise a day. After this, I have become willing to sacrifice. It sucks sometimes. If you have read all our letters, you will know I gave up alcohol years ago, got divorced, and am taking on a baseline level of physical fitness. None of this was easy.
I’ve realized my capacity is at its limit with work, kids, and health. Anything more causes anxiety and fatigue. Going into 2026, I know that excelling as a father and a worker, and maintaining my health, means sacrificing other pursuits. If I shift focus, something must give—and right now, I’m not willing to adjust to those main priorities.
My three questions to the broader group to reflect on:
- Are you over-committed?
- Does over-commitment cause you consternation?
- If you write down 2 priorities and 1 back-up priority, are you willing to sacrifice anything to do all 3 at an above-average level?
Ryan Duffy
Co-Head of Business Development
The Drivers of a Good Year
As we close out the year and begin to look forward, I share with great humility that 2025 was one of my most rewarding years, both personally and professionally.
On the personal front, our family is happy, healthy, and connected. I feel very fortunate for all the goodness we have been afforded. When the wind of life is to your back, take it and be grateful.
On the professional side, our firm continues its steady growth. We were fortunate this year to finalize a new partnership that more than doubled our assets under management. This accomplishment was years in the making and a true testament to your collective hard work, dedication, and alignment.
Reflecting on both personal happiness and professional achievement, I realized the underlying formula for both successes is the same and very simple: communication promotes connection; connection creates momentum; and momentum leads to progress.
The lesson: Don’t allow comfort or complacency to fool you or slow you down. Over-communicate, build connections, and keep your momentum moving forward!
Daniel Reams
Senior Business Development Director
A Year of Growth and Gratitude
As I look back on 2025, I’m filled with gratitude for the journey that led me to Smith Capital. This year has been all about growth and embracing new challenges. Moving from my role as a Smith Capital specialist at Alps to being hired directly into Smith Capital, and taking on the Senior Business Development Director role, has been both a professional and personal highlight.
On the business side, taking on this expanded role, especially through our great partnership with First Trust, has been incredibly challenging and rewarding. And on a personal and emotional level, I’ve deepened my relationships with my colleagues and truly feel lucky and grateful to be part of this team. I’m excited to see what the future holds!
Cassandra Kneen
Client Experience and Business Development Associate
A Discipline of Optimism
“Some blame the internet for this obsession with negativity, but I’ve come to believe that what we are seeing through social media is the external reflection of our own internal worlds. Even offline, negative emotions seem to stay with us longer than positive emotions. The euphoria of a positive experience, no matter how intense or exhilarating, will last for only a moment. Negative emotions, on the other hand, have a long tail and are far more difficult to overcome. We must choose positive emotions while negative emotions seem to choose us. That’s why optimism is a discipline. It takes discipline to see the good when things are going bad. It takes discipline to see beauty in the midst of tragedy. It takes discipline to see the best in people when they let us down. It takes discipline to forgive when the person does not deserve it. It takes discipline to reject the negative voices in our heads and choose to listen to the optimist who’s cheering us on.”
– Erwin McManus, Mind Shift
It’s a wonderful time of year. I’m writing this just after Thanksgiving, a holiday that left me with immense joy and peace. I hope we all soak up as much warmth and gratitude as we can this season.
This year has been defined by our team at Smith Capital coming together with a rigorous work ethic to continue elevating how we serve clients and improve the business each day. We were elated to become the sub-advisor on two ETFs with First Trust and to continue growing assets under the ALPS products we sub-advise for. Our nimble team came together to achieve much, and we credit much of our success and growth to the support of our clients, advocates, and partners. We are deeply grateful for your partnership and allowing us to continue doing a job we love.
As I close out this year, I re-read Mind Shift by Erwin McManus, a book many of us at the firm read in 2024. What I’m left with is a motto for the new year: to continue in a discipline of optimism. I have seen the power of this through our incredible success as a business, through friends and family who, despite hardship, choose empathy and service, and most of all through my 92-year-old grandmother, who never complains about pain or old age but simply focuses her days on gratitude and giving to others and her community. I have seen the power of empathy over resentment and gratitude over jealousy this year. As I walk into the next year, that will be my credo.
Russ McFarland
Product Specialist
Embrace the Change
“You can’t always be Peter Pan; you have to grow up someday.” These were profound words spoken to me from an old college friend when he heard that I was getting married this year. Mind you, this friend, single and never married, dwells in a space more akin to the “Dude” from The Big Lebowski than that of a middle-aged man who has settled down in life. Nonetheless, his words resonated with me as I soon realized that married life did not require me to abandon every interest I hold dear and near. Reflecting on being a newly married individual, all the fears I previously held about commitment or having a person always there, have quickly dissipated as I have embraced some of the nuanced things one might only find in a marriage, like a home that feels like a greenhouse due to an abundance of plants, an evening cooking together only to both avoid the cleanup afterwards, or a weekend night at Home Depot loading up on supplies for the next DIY project. While not every day can be described as “peaches and cream,” I have gained utmost respect for couples with long, sustainable relationships and marriages, as it has become apparent to me that sacrifices from all parties must be made for a healthy relationship. No longer does every wall in my house consume a precious piece of Philly sports memorabilia.
Beyond getting married, I joined Smith Capital this past April, taking on a role that expanded on my past opportunities while allowing me to continue growing as a professional. Joining a new firm or taking on a new role is often exciting but can also induce fear, like what a child might feel on his first day at a new school. One must start relationships from the ground up, while simultaneously immersing oneself in new responsibilities and requirements. During the hiring process, I continually heard about the firm’s culture, which, admittedly, brought out the skeptic in me. From past experiences, not limited to just the workforce, I have found that culture is often discussed ad nauseam and yet rarely implemented or executed. Actions often speak louder than words, and the idea of culture implementation is no exception. The easiest way to describe the culture of Smith Capital to an outsider is to give the low-hanging fruit answer of “you kind of had to be there.” I have found the omnipresent dedication to culture to be the primary driver of a quick, efficient assimilation into the Firm, which has more than offset any reservations I may have had about switching jobs. Maybe the grass is always greener on the other side?
With that, I extend the challenge of embracing change. As daunting as it may seem at the onset, the ends justify the means, and you might just be surprised at the rewards granted to a grown-up Peter Pan when you challenge yourself and embrace the next chapter of your life. To my wife, my family, my friends, my peers, and all our wonderful clients, thank you. This opportunity would not be possible without each one of you, and I look forward to the next exciting, never-dull year in the financial markets.
Gibson Smith
Founder | Chief Executive Officer | Chief Investment Officer | Portfolio Manager
My Many Weaknesses.
I find myself reflecting on the moments that defined 2024 and the lessons they brought. It’s a natural moment to step back, evaluate what shaped us this year, and recommit to the principles that will guide us forward.
Two of my major takeaways from this year are the importance of authentic partnership and development.
This year marked a major milestone for the firm as we established a new partnership with First Trust. After a long, detailed process, our decision to partner with them – and their decision to engage us as sub-advisors on two of their ETFs – resulted in a doubling of our assets under management and a larger runway for growth. While that growth is meaningful, the more powerful lesson was the reminder of how essential an aligned partnership is in building a durable business.
We committed significant time to truly get to know each other. I focused closely on cultural consistency and values alignment—two non-negotiables in the firm we are building. The more time we spent together, the clearer it became that our organizations shared core commitments: strong ethics, accountability, performance-driven cultures, and a foundational focus on service. Most importantly, the more exposure we had to First Trust, the more obvious it became that their greatest strength is their people. Their culture is collaborative, disciplined, and committed to excellence.
I feel fortunate to partner with such an exceptional firm, with exceptional people, and to be aligned with a culture so grounded in service. I am energized by the future and believe this partnership will strengthen our firm in meaningful ways.
This was also a year of development—for me personally and for our team. Last year, I said that growth begins with an honest evaluation of where we stand. That truth became even more evident as we doubled our AUM, added new people, and refined our processes. Scaling required us to confront a key question: what does the next chapter demand of us?
I diagnosed this stage as Chapter Two for the firm. Chapter Two is about intentionally building the structure, habits, and culture that allow our mission to scale without compromising who we are. Our three pillars remain unchanged—intentional culture, investing excellence, and people/relationships. These guide everything we do. But moving forward meant evaluating how we work, how we communicate, and how we show up for one another. I’m excited and inspired by how the team has responded.
On a personal level, I was forced to take a hard look at my own strengths and weaknesses as a leader. My self-deprecating personality often highlights the weaknesses first – I’m rarely short on things I believe I need to improve. No one is harder on me than myself. I’ve spent countless hours journaling and reflecting on where I need to grow.
I also looked to the team for guidance. We have a culture rooted in kindness, commitment, and care. Those strengths can unintentionally soften hard feedback. I felt our culture wasn’t giving me the direct, challenging critique I needed. So, I initiated a “difficult conversation challenge” and asked that each person on the team have at least one hard conversation with me before year-end. My hope is that these conversations surface the candid perspectives that will help me become a better leader. They will guide my work. After all, the people I trust should be the ones who hold the sharpest mirror.
My goal in this exercise is simple: build a stronger team and a more effective firm, one that serves you better, thrives in the face of challenging markets, and allows me to lead with the greatest clarity and impact. My commitment to this opportunity and to serving you has not wavered. I remain fully committed to my growth—personally and professionally. I want my time and energy directed toward where I can add the most value: relentlessly strengthening the team’s health, functionality, and alignment. Our collective commitment to an intentional, high-performing culture is the engine that will move this firm forward.
I welcome your engagement, too. Your feedback – especially the harsh, brutally honest, direct kind – is not just accepted, but encouraged. The best gift you could give me this year is direct, honest feedback on how I/we can improve our service to you.
Looking at the markets, 2025 was another year of post-COVID normalization, layered with a dramatic change in national leadership. Policy resets bring uncertainty and volatility, and we expect that uncertainty to persist well into 2026. While the media focuses on everything that can go wrong, I remain focused on what can go right.
My conviction is that inflationary concerns are overstated and that we may be entering a period that leans more deflationary than inflationary. If that’s correct, the bond market presents not only reasonable return potential, but also meaningful protection against volatility—an insurance policy in a period where uncertainty remains high. More on this later.
I enter this next year with optimism and excitement, anchored by my commitment to personal growth, team development, and disciplined navigation of the markets. I’m energized by the foundations we’ve built and the momentum we carry. Together, we will continue to grow, lead, serve, and contribute meaningfully to the lives of those who rely on us.
We have chosen to ‘not be everything to everyone’, but we will be significant to the people we serve.
Thank you for being on this journey with us. Without you, we do not have a firm.
Here’s to a fulfilling, prosperous, and impactful year ahead. Let’s make it the best year of our lives.
Warmly,
Gibson
The opinions and views expressed are as of the date published and are subject to change without notice. Information presented herein is for discussion and illustrative purposes only and should not be used or construed as financial, legal, or tax advice, and is not a recommendation or an offer or solicitation to buy, sell, or hold any security, investment strategy, or market sector. No forecasts can be guaranteed. Any investment or management recommendation in this document is not meant to be impartial investment advice or advice in a fiduciary capacity and is not tailored to the investment needs of any specific individual or category of individuals. Opinions and examples are meant as an illustration of broader themes, are not an indication of trading intent, and are subject to change at any time due to changes in the market or economic conditions. There is no guarantee that the information supplied is accurate, complete, or timely, nor are there any warranties concerning the results obtained from its use. It is not intended to indicate or imply that any illustration/example mentioned is now or was ever held in any portfolio.
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Past performance is no guarantee of future results. Investing in a bond market is subject to risks, including market, interest rate, issuer, credit, inflation, default, and liquidity risk. The bond market is volatile. The value of most bonds and bond strategies are impacted by changes in interest rates. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens. High yield or “junk” bonds involve a greater risk of default and price volatility and can experience sudden and sharp price swings.
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