Earning $133,849 a year for this association.
As of May 31, 2026 · Account WA7-241109 · Truist Advisory Services
A $3.23M reserve portfolio — 90.8% in investment-grade corporate bonds, 9.2% in cash earning 3.57%. Every bond is held to maturity, every dollar of principal comes back, and the portfolio is paying roughly 48% more interest than the budget assumed.
About the $133,849 figure
A full-year run-rate from the $50,288 earned in five months. The final number depends on reinvesting the $150,000 HCA redemption returned to cash on May 27.
01 Portfolio Snapshot
As of May 31, 2026Including $36,630.43 of accrued but unpaid interest, total economic value is $3,265,071. Cash rose from $142,226 to $297,957 in May after the HCA redemption was swept in.
02 Income — The Headline
Budget was $90,000Run-rate from $50,287.63 earned in the first five months. The budget assumed $90,000 — this portfolio is on pace to beat that by $43,849, the equivalent of $110.73 per unit in pure surplus that the FY2026 budget never assumed.
$133,849 ÷ 396 units = $338.00 per unit per year. The $43,849 above budget is roughly $110.73 per unit of pure surplus the FY2026 budget did not assume.
03 Fees — A Profit Center, Not a Cost
$5,658/yr on $3.2MFor every dollar paid in management fees, the portfolio collected $8.89 in income year to date.
Annual fees of $5,658 on a $3.2M portfolio. Well below a typical advisory cost — this is a profit center, not a cost center.
$50,288 income less $5,658 fees. Already nearly half the full-year budget, with seven months still to go.
04 May 2026 — Account Activity
May 1 – 31, 2026| Date | Event | Type | Amount |
|---|---|---|---|
| 05/01/26 | JPMorgan interest received | Income | $1,095.00 |
| 05/11/26 | Citigroup interest received | Income | $581.01 |
| 05/27/26 | HCA Inc. bond called at par — full redemption | Principal | $150,000.00 |
| 05/27/26 | HCA interest (final) | Income | $3,543.75 |
| 05/29/26 | Sweep account interest | Income | $510.83 |
| — | Total May Interest Income | $5,730.59 |
05 All Bond Holdings
Investment-grade corporate bonds| Issuer | Coupon | Maturity | Rating | Face Value | Market Value |
|---|---|---|---|---|---|
| BDC / Private Credit ~55% of bonds | |||||
| Lennar Corp | 5.250% | 06/01/2026 | Baa2 / BBB | $100,000 | $100,000 |
| Blue Owl Capital Corp | 3.400% | 07/15/2026 | Baa2 / BBB- | $150,000 | $149,781 |
| Hercules Capital | 2.625% | 09/16/2026 | Baa2 | $150,000 | $148,956 |
| Blackstone Private Credit | 2.625% | 12/15/2026 | Baa2 / BBB- | $50,000 | $49,409 |
| Ares Capital Corp | 7.000% | 01/15/2027 | Baa2 / BBB | $150,000 | $151,965 |
| Blue Owl Technology Finance | 2.500% | 01/15/2027 | Baa3 / BBB- | $150,000 | $147,153 |
| FS KKR Capital Corp | 2.625% | 01/15/2027 | BBB- | $100,000 | $98,145 |
| Oaktree Specialty Lending | 2.700% | 01/15/2027 | Baa3 | $300,000 | $294,906 |
| Morgan Stanley Direct Lending | 4.500% | 02/11/2027 | Baa3 | $50,000 | $49,802 |
| Golub Capital BDC | 2.050% | 02/15/2027 | Baa2 / BBB- | $150,000 | $146,583 |
| Goldman Sachs BDC | 6.375% | 03/11/2027 | Baa3 | $50,000 | $50,528 |
| Ares Capital Corp | 2.875% | 06/15/2027 | Baa2 / BBB | $50,000 | $49,026 |
| Brighthouse Financial | 3.700% | 06/22/2027 | Baa3 / BBB | $200,000 | $197,078 |
| FS KKR Capital Corp | 3.250% | 07/15/2027 | BBB- | $50,000 | $48,752 |
| Blue Owl Capital Corp | 2.875% | 06/11/2028 | Baa2 / BBB- | $50,000 | $47,193 |
| Blue Owl Credit Income | 7.950% | 06/13/2028 | Baa2 / BBB- | $150,000 | $155,609 |
| Main Street Capital | 5.400% | 08/15/2028 | BBB- | $50,000 | $49,814 |
| Barings BDC | 5.200% | 09/15/2028 | Baa3 | $50,000 | $49,150 |
| FS KKR Capital Corp | 3.125% | 10/12/2028 | BBB- | $100,000 | $94,154 |
| Major Banks / Financial Institutions ~23% of bonds | |||||
| JPMorgan Chase | 4.470% fl. | 02/01/2027 | A3 / BBB | $100,000 | $99,538 |
| PNC Financial Services | 6.615% fl. | 10/20/2027 | A3 / A- | $100,000 | $100,897 |
| US Bancorp | 6.787% fl. | 10/26/2027 | A3 / A | $100,000 | $100,952 |
| Goldman Sachs Group | 5.484% fl. | 03/15/2028 | A2 / BBB+ | $50,000 | $50,487 |
| Blackstone Secured Lending | 5.350% | 04/13/2028 | Baa2 / BBB- | $150,000 | $149,822 |
| Citigroup | 4.716% fl. | 05/07/2028 | A3 / BBB+ | $50,000 | $50,217 |
| Bank of New York Mellon | 4.318% fl. | 06/09/2028 | Aa3 / A | $50,000 | $50,037 |
| Other Corporates ~13% of bonds | |||||
| Keurig Dr Pepper | 4.514% fl. | 03/15/2027 | Baa3 / BBB- | $100,000 | $100,151 |
| General Motors Financial | 4.668% fl. | 07/15/2027 | Baa2 / BBB | $50,000 | $50,092 |
| American Honda Finance | 4.463% fl. | 03/03/2028 | A3 / BBB+ | $50,000 | $50,060 |
| Hewlett Packard Enterprise | 4.594% fl. | 09/15/2028 | Baa2 / BBB | $50,000 | $50,231 |
06 Maturity Ladder
Principal returns by year| Year | Principal Maturing | Key Bonds |
|---|---|---|
| 2026 | ~$597,000 | Lennar (done), Blue Owl, Hercules, Blackstone PC |
| 2027 | ~$1,255,000 | Ares (×2), FS KKR (×2), Oaktree, JPMorgan, Golub, Goldman BDC, Brighthouse, PNC, US Bancorp, Morgan Stanley DL, Keurig, GM Financial |
| 2028 | ~$1,098,000 | Blackstone SL, Goldman GS, Citigroup, BNY, Blue Owl (×2), Main Street, Barings, HP Enterprise, American Honda, FS KKR 2028 |
07 Credit Quality
Zero defaults · zero missed payments| Rating Band | Positions | Representative Issuers |
|---|---|---|
| A / Aa — Highest IG | 7 | JPMorgan, PNC, US Bancorp, Goldman Group, Citigroup, BNY Mellon, American Honda |
| BBB / Baa2 — Strong IG | 12 | Lennar, Blue Owl, Ares, Hercules, Blackstone, Golub, GM Financial, HP Enterprise |
| BBB- / Baa3 — Low IG | 11 | Blue Owl Tech, Oaktree, Goldman BDC, Morgan Stanley DL, Brighthouse, Barings, Keurig, Main Street, FS KKR (×3) |
08 Crisis History — What Happened to These Bonds
Stock investors were frightened. Bond investors got paid.
- BDC stock prices fell 60–80% peak to trough
- BDC bond prices fell to ~70–80 cents temporarily
- Bond interest payments continued in full — never missed
- Major bank bonds protected by the government backstop
- BDC stock prices fell 40–60% in weeks
- BDC bond prices dipped, then recovered rapidly after the Fed stepped in
- Bond interest payments continued in full — never missed
- NAV declines of 10–20% mostly reversed by end of 2020
09 Key Messages
For the floor"This portfolio earned $133,849 in interest income this year against a $90,000 budget. That's $338 per unit, per year, going back to this association — $43,849 more than anyone planned for."
"For every dollar we paid in management fees, we collected $8.89 in income. Annual fees are 0.18% of assets. This is not a cost center — it is a profit center."
"A negative mark on bond prices is paper — the same way your home value fluctuates. Every bond is held to maturity. Every dollar of principal comes back. The portfolio is up $38,514 year to date."
"Every bond carries an investment-grade rating from Moody's, S&P or KBRA — the same agencies that rate U.S. Treasuries. Ares Capital manages over $300 billion. These are among the largest institutional lenders in the world."
"In both crises, bond interest was paid in full. Not one of our issuers has ever defaulted. Stock investors were frightened. Bond investors got paid. We own bonds."
"Every bond has paid on time. Zero defaults. Zero missed payments. The portfolio is growing. We are earning $133,849 a year for the benefit of every homeowner here. I welcome any questions."
10 Advisor & Custody
$110M AUM · 18 yearsSEC-registered investment adviser representative and general securities representative with 18 years in the industry, serving clients out of Truist Advisory Services in Weston, FL. His career spans Wells Fargo Clearing and SunTrust Advisory Services (now part of Truist), and he personally manages roughly $110 million in client assets. When he changed firms, the association moved its relationship with him — the same advisor, the same hands on this portfolio, before and after the transition.
Truist Advisory Services is a large SEC-registered investment adviser serving individuals, corporations, retirement plan sponsors, and charitable organizations — offering discretionary and non-discretionary solutions that combine model portfolios, third-party managers, and advisor-led asset allocation and fund monitoring.