bank of aMerica corP. (floating rate notes Due June 1, 2016)
The position: Core holding purchased in March 2013 Why do you like it? The managers’ improving confidence in the U.S. banking sector prompted them to add these floating rate notes, which offered a very attractive yield versus alternatives such as Royal Bank and GE.
“These notes are contributing nicely to the yield in our clients’ portfolios without adding incremental interest rate risk, as the duration on these notes is negligible,” Berlettano said. Biggest risk: The U.S. economic recovery flounders.