DMWB's selection of fixed-income securities begins with analysis of the nation's economy.  We focus on key economic factors such as: consumer spending and credit; housing; capital spending; inventories; credit expansion and liquidity; foreign trade and exchange rates; and fiscal and monetary policy.  Special attention is given to the outlook for inflation, the amount of excess capacity in the economy and the trend-line growth rate.  All of this data is used to anticipate the direction of interest rates.

Next, we evaluate the current supply of fixed-income securities versus demand.  We look at the forward calendar for government, corporate and municipal issues.  In terms of demand, we analyze cash flow for banks, savings & loans, money market funds, insurance companies and pension plans.

Finally, we examinethe yield curve configuration and quality spread relationships as they exist versus the past data, and versus this stage in previous economic cycles.   We determine the market attractiveness of each security by comparing it with the treasury yield curve and we purchase securities which have the best relative versus Treasuries.