UBS - Taxable Fixed Income

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Taxable Fixed Income

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Taxable fixed-income securities can be an important part of a diversified portfolio. They offer predictable interest income and repayment of principal (if held to maturity and subject to issuer credit risk). In addition, incorporating taxable fixed-income securities into a portfolio may help offset the volatility of other asset classes, thus potentially reducing the overall volatility of the portfolio.

Asset Allocation is Key
Based on your investment profile, objectives and risk tolerance, our Financial Advisors will help you to determine the appropriate allocation to taxable fixed-income securities for your portfolio.

We offer a broad selection of taxable fixed-income securities to help you pursue short- and long-term goals, including:

Agency Securities	Certificates of Deposit
Corporate Bonds	Mortgage-Backed Securities
Preferred Securities	Treasury Securities

In addition, you may also choose to implement research-based taxable bond models to help address your needs.

Fixed-income securities are subject to market risk and interest-rate risk. If sold in the secondary market prior to maturity, investors may experience a gain or loss depending on interest rates, market conditions and the credit quality of the issuer.

Interest-Rate Risk — Fixed-income securities are subject to market value fluctuation given changes in the level of interest rates. For example, if interest rates rise, the value of fixed-income securities could decline.

Reinvestment Risk — Since many fixed-income securities pay interest semiannually, the reinvestment of coupon payments over the life of the bond can have a major impact on the bond's total return.

Credit/Event Risk — Certain fixed-income securities are subject to event risk and/or changes in credit quality. Issuers can experience increased competition, takeovers and other economic situations that may have adverse effects on the market value of their securities.

Call Provisions — When evaluating the purchase of a fixed-income security, one should be aware of any features that may allow the issuer to call the security. This is particularly important when considering an issue that is trading at a premium to its call price, since the return may be negatively impacted if the issue is redeemed.

UBS Financial Services Inc. does not provide tax or legal advice.

UBS Wealth Management Research in the U.S. is provided by UBS Financial Services Inc. UBS Financial Services Inc. is a subsidiary of UBS AG. UBS Wealth Management Research and any affiliate of UBS AG may publish research, express opinions or provide recommendations that may be inconsistent with each other and/or may be inconsistent with investing in a specific product. Investors should make their own independent investigation of the merits of investing in any particular product. Two sources of UBS Research are available to you as a UBS client. One source is UBS Wealth Management Research. UBS Wealth Management Research is part of UBS Global Wealth Management & Business Banking (the UBS business group that includes, among others, UBS Financial Services Inc. and UBS International Inc.), whose primary business focus is individual investors. The second source is UBS Investment Research. UBS Investment Research is part of UBS Investment Bank, whose primary business focus is institutional investors. Because both sources of information are independent of one another and reflect the different assumptions, views and analytical methods of the analysts who prepared them, there may exist a difference of opinions between the two sources.


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Agency Securities Certificates of Deposit Corporate Bonds Mortgage-Backed Securities Preferred Securities Treasury Securities

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