ROCKHOUSE Capital helps Fixed Income investors create Cash Flow driven investment portfolios.
We provide the education and analysis necessary to make complex securities available to investors.
ROCKHOUSE performs structural and loan-level analysis to select and purchase MBS investments.
MBS portfolios are designed to provide long term Total Return through consistent Monthly Cash Flow.
The potential for rising interest rates has scared many investors out of the Fixed Income market.
Amortizing instruments such as MBS enjoy several advantages to traditional bullet bonds in a rising interest rate environment.
- Each monthly cash flow includes a partial return of principal which shortens the bond’s life.
- Return is delivered through Monthly Cash Flow. No asset sale is required.
- Monthly Cash Flow allows for opportunistic reinvestment.
Individually Held Accounts
ROCKHOUSE allows investors to hold MBS in individual accounts. We believe there are compelling reasons to hold MBS in individual accounts:
- Asset Security. Cash and Bonds are held in an individual account held by a third party custodian. The account is in the investor’s name and funds are accessible to the investor at all times.
- Liquidity. Collective Funds are typically locked-out to protect the fund from liquidation requests. We believe lock-out undermines the value of holding Cash Flow Investments as funds will become unavailable to investors when they are needed most – in times of market/financial distress.
- ROCKHOUSE investors can make individual purchase or sale decisions, allowing us to customize the risk/reward profile of each portfolio.
- ROCKHOUSE investors have full access to the Monthly Cash Flow produced by their MBS portfolio.
Holding Real Estate in a Qualified Retirement Plan (IRA/401K) is complicated. MBS is an excellent substitute for Real Estate and can easily be held in IRA/401K accounts.
- MBS allow for diversification of borrowers, properties, and geographies.
- MBS is an excellent hedge for an existing portfolio of physical real estate.
To learn more about Real Estate linked Fixed Income Investments, click here and contact us.