The Bank:
Field & Main Bank (Henderson, KY) engaged Taylor Advisors to be its municipal investment advisor in the 2nd quarter of 2015.
The Challenge:
Field & Main Banks’s investment yield was below peer and ranked in the 45th percentile per UBPR.
The Solution:
In the initial meeting, Taylor Advisors and the bank discussed the Investment Committee structure, reviewed highlights of a new proposed Investment Policy and Strategy, and examined options for security execution.
Benefits of the Strategy
- Takes advantage of the added relative value of owning General Market Municipals over Bank Qualified Municipals
- Provides a vehicle to efficiently own General Market Municipals
- Maximizes liquidity and earnings characteristics of owning General Market Municipals
Taylor Advisors Expertise in the Municipal Market
- Third Party SEC Registered Investment Advisor who fulfills several business purpose requirements for the strategy
- Dedicated Staff that covers the market
- Dedicated Staff to independently Grade and Monitor Issuer Credit
- Purchasing Power and Strong Relationships with Municipal Underwriters to Negotiate favorable terms on behalf of our clients
The Outcome:
The bank increased its allocation to the municipal bond sector maintaining excellent credit quality and achieving superior returns. The bank owned these securities in a tax-efficient structure.
For details on the performance of Taylor Advisors’ investment advisory clients, please contact us at at sasha@tayloradvisor.com or 502-412-2205.