Gurtin Fixed Income Launches Bank Advisory Service Platform
Gurtin Fixed Income is pleased to announce the launch of their Bank Advisory Service platform which provides banks with a cost effective solution to prepare for the new ruling from the Office of the Comptroller of the Currency: OCC 2012-18. Beginning January 1, 2013, this OCC ruling will require banks to independently assess the underlying credit quality of their municipal bond holdings and not simply rely on nationally recognized credit rating agencies to determine the safety of the bonds.
Gurtin Fixed Income's Municipal Credit Advantage product is specifically tailored to help banks analyze municipal bond quality according to the OCC's detailed guidelines, and provides forward-looking independent research aimed to stay ahead of credit events in the historically opaque municipal bond market. Gurtin Fixed Income's history of deep municipal credit research coupled with the management of over $6 billion in fixed income portfolios, uniquely positions them to provide banks with independent, objective credit research. Since its founding, the firm has invested millions into building proprietary software, developing expansive infrastructure for independent research, and assembling a team of leading municipal credit analysts across the country.
“There has never been a time when actionable credit research was more important than now for investors in the highly opaque and fragmented municipal bond market. The lagged impact of the credit crisis is just now surfacing as evidenced by both the increased numbers of stressed obligors identified by our research team as well as the rise in reported and rumored local government bankruptcies. The safety net of insurance is gone, professionals trained in fundamental credit research are in short supply, and the ratings agencies have proven to be inadequate arbiters of municipal credit,” stated Bill Gurtin, CEO of Gurtin Fixed Income.
With the banking industry facing increased regulatory requirements coupled with the continued uncertainty regarding obligor credit quality in the municipal market, banks without extensive in-house research and investment teams may face many challenges.
“Municipal Credit Advantage is a unique product, because it goes well beyond the basic financial reporting that bond brokers have been providing to banks for years, and offers an actionable (hold/sell) credit interpretation of the data. We are not interested in simply providing banks with a bond's financial statement for their files, but we employ the same rigor and forward-looking credit analysis and monitoring for banks that we provide for our clients who have entrusted us with billions of dollars under management,” said Steve Simpson, president of Gurtin Fixed Income.
As the New Year is rapidly approaching and the mandatory OCC requirements become effective, Gurtin Fixed Income continues to work with banks across the country to ensure compliance and provide stewardship for informed investment decisions.
Gurtin Fixed Income Management, LLC is registered with the SEC as an investment adviser. Information about Gurtin Fixed Income Management, LLC is available in its Form ADV. For more information, please visit www.gurtin.com.