Insights & Education

Learn how reverse convertible structured notes combine bonds and equity options to deliver "coupons well into the double digits" while providing upfront price protection in volatile markets.

In our conversation with Kris Konrad from Piton Investment Management, we explore how this innovative approach is creating attractive risk-reward propositions for yield-hungry investors seeking alternatives to conventional high-yield investments.

Kris Konrad of Piton Investment Management shares his expertise on structured notes, explaining how these instruments generate cash flows through option sales rather than traditional balance sheet backing, and how they can enhance portfolio yields while providing defined levels of principal protection.

Introducing Piton Investment Management's Structured Notes Resource Center with Kristopher Konrad, Founding Partner at Piton Investment Management

The structured notes SMA offering specifically enhances Piton's Yield Enhanced capabilities, bringing additional institutional-quality expertise to the independent advisory space. Led by Kristopher Konrad, whose prior experience includes growing Annaly Mortgage Management's portfolio from $2.5 billion to over $140 billion during his tenure at the company, Piton brings extensive expertise in fixed income and structured products to the independent advisory space.

The third quarter of 2025 has proven to be a pivotal period for fixed income markets as the Federal Reserve finally ended its nine-month pause and began cutting rates in September.

Understanding economic regimes provides the conceptual foundation for modern fixed income investing, but translating that knowledge into actionable portfolio strategies requires mastering the fundamental building blocks of bond portfolio construction. The most sophisticated economic analysis becomes meaningless without the ability to implement those insights through deliberate decisions about duration, credit quality, and sector allocation.

The traditional approach to fixed income investing—buying bonds and holding them to maturity—assumes a level of economic stability that simply doesn't exist in today's markets. From the ultra-low interest rate environment of the past decade to the rapid monetary tightening cycles we've witnessed, each shift has fundamentally altered which fixed income strategies succeed and which create significant headwinds for investors.

August brought solid performance in both equity and fixed income markets as a few macro themes unfolded. With a much lower than expected monthly figure, plus significant revisions to prior months, the employment data went from robust to slowing. Yields dropped and stocks rallied as markets anticipated future rate cuts from the Federal Reserve Bank at their upcoming September meeting and potentially beyond.

Traditional fixed income investing faces an existential challenge. The static allocation models that dominated portfolio construction for decades are becoming obsolete in an era where inflation can surge rapidly, central banks pivot policy overnight, and economic regimes shift with unprecedented frequency.

Fixed income surprised investors in Q2 2025, with bonds gaining 4% despite market volatility and Fed uncertainty. Brian Lockwood breaks down the quarter's "bull steepening" yield curve dynamics and reveals why municipal bonds now offer some of their most attractive valuations in years, plus his strategic positioning recommendations for the second half of 2025.

May was marked by a strong rebound in U.S. markets, as easing trade tensions and resilient economic indicators boosted investor sentiment. Early in the month, the U.S. and China agreed to de-escalate their trade war – including a 90-day suspension of planned tariffs – which proved to be a major catalyst for risk assets.