Fixed Income For the strategy of fixed income investment, our idea is to invest in the most stable and low risk asset. And most parts are included in the US market because US market has the impeccable credit and rating system. The fixed income portfolio included US treasury notes and high US rating corporate bond. For more detail, the fixed income portfolio includes 5-years US Treasury notes, Boeing Bond, Walmart Bond and Chevron Bond. We are going to present the analysis of each investment asset as following. For the benchmark of fixed income portfolio, we choose to use iShares Core US Aggregated Bond ETF (AGG US Equity) as the benchmark. The fund invests in securities and corporate securities, MBS, ABS and CMBS. US Treasury Notes US Treasury notes investment is the foundation of our fixed income investment. US treasury is sold and graduated by US government. US treasury investment is the most safety investment over the world. We will invest part of our capital into 5-years US Treasury notes. The purpose is to make most stable investment with the lowest risk. The current YTM is 2.368%. The coupon rate is 2.75%. The maturity is 5 years due on February 24. We decided to hold the treasury to maturity, so we would not consider the interest risk and currency risk. Boeing (097023AH8) Boeing is the largest global aircraft manufacturers founded in 1916. Its product included commercial aircraft, military aircraft and satellites. In addition, Boeing provides the relative support service to the commercial airline industry. In 2018, the revenue was approximately $101.13 billion. The operating income is approximately $12 billion. The total asset is over $117 billion, and the total equity is about $410 million. The maturity is on August 2024. The fixed coupon rate is 7.95% with semi-annual payment. The bond type is puttable after August 15, 2012. For the bond rating, Moody’s rank is A2, S&P’s rank is A and Fitch’s rank is A. The cash from operating activities has a constant growth from $8.858 million in 2014 to $15.322 million in 2018.The return on assets also has a strong performance which is from 5.05 in 2013 to 9.11 in 2018. The return on invested capital is from 24.70 in 2013 to 70.35 in 2018. Overall, the bond rating is good. The cash flow in history has a constant growth and Boeing has a constant growth return in the past five years. We believe Boeing has the ability of solvency and interest payment. The default risk is below the average industry. Boeing’s bond is a good opportunity for low-risk investment strategy. Walmart (ZS2194851) Walmart is the largest retail corporation included discount department and warehouse stores in the world. In 2018, the revenue was approximately $514.4 billion. The operating income is approximately $21.95 billion. The net income is approximately $6.69 billion. The total asset is over $219.3 billion, and the total equity is about $72.5 billion. The total asset is over $117 billion, and the total equity is about $410 million. The bond maturity is on August 2026 and sold at par value. The fixed coupon rate is 3.05% with semi-annual payment. The bond type is callable. For the bond rating, S&P’s rank is AA and Fitch’s rank is AA. The cash from operating activities keep a constant amount from $28,564 million in 2015 to $27,753 million in 2018. The return on invested capital also is flap from 12.98 in 2015 to 10.40 in 2018. In addition, the gross margin, EBITDA margin and operating margin has a lit drop in the past five years. Overall, the bond of Walmart is also an attractive bond for low-risk investment strategy. As the largest retail corporation in the market and the constant outstanding performance in the history, the solvency ability is reliable. We recommend adding this bond into fixed income portfolio and hold to maturity to earn the fixed yield. Chevron Corp (166764BK) Chevron Corporation is an integrated energy company which operates in countries over the world. The main business included the crude oil and natural gas production and transportation. In 2018, the revenue was approximately $158.9 billion. The operating income is approximately $15.45 billion. The net income is approximately $14.82 billion. The total asset is over $253.9 billion, and the total equity is about $154.5 billion. The maturity of bond is on August 2026 and sold at par value. The fixed coupon rate is 2.566% with semi-annual payment. The bond type is callable. For the bond rating, S&P’s rank is AA and Fitch’s rank is AA. The cash from operating activities has a down trend from $31,475 million in 2014 to $20,338 million in 2017. However, it recovered to $30,618 million in 2018. The new income margin and EBITDA margin have the same drop through 2017 and recovery back in 2018. As the energy company in the oil and natural gas industry, the business should be affected a lot by market demand and supply or the technology development. Overall, Chevron is the leader in the area of oil and natural gas production. Their business is still the most profitable and reliable over the world. The financial analysis for Chevron is acceptable. Finally, we would add Chevron’s bond into our fixed income portfolio and hold to maturity to earn the constant interest with low risk. < > AAPL 41 02/23/36 Corp DES Related Functions Menu AAPL 4 32 02/23/36 $7111.063 At 14:00 AAPL 4 22 02/23/36 Corp Settings < > AUTOHOM Position Sa Portfolio Nar Date Rebalanced +.469 64.6 bp vs T 3.375 11/15/2048 Message CO2 Source BMRK Actions 25) Bond Description Page 1/12 Security Description: Bond 26 Issuer Description 94) Notes 95) Buy Pages 96) Sell Issuer Information 11) Bond Into Name 12) Addtl Info Identifiers APPLE INC ID Number 13) Reg/Tax Industry Communications Equipment JK1380522 CUSIP 14) Covenants Security Information 037833BW9 ISIN USO37833BW97 15) Guarantors Mkt Iss Global 16) Bond Ratings Bond Ratings Country US Currency USD Moody's Aa1 Identifiers Rank Sr Unsecured Series S&P AA+ 18) Exchanges Coupon 4.500000 Fixed Type Composite AA+ 19) Inv Parties 20) Fees, Restrict Cpn Freq S/A EJR АА 21) Schedules Day Cnt 30/360 Iss Price 99.53000 Issuance & Trading 22) Coupons Maturity 02/23/2036 Amt Issued/Outstanding Quick Links MAKE WHOLE @30.000000 until 08/23/35/ CALL... USD 1,250,000.00 (M)/ USD 1,250,000.00 (M) 32) ALLQ Pricing Iss Sprd +190.00bp vs T 3 11/15/45 33) QRD Qt Recap Min Piece/Increment Calc Type (1)STREET CONVENTION 34) TDH Trade Hist 02/16/2016 2,000.00 / 1,000.00 Pricing Date 1,000.00 35) CACS Corp Action 02/23/2016 Par Amount Interest Accrual Date Prospectus JOINT LEADS 02/23/2016 Book Runner 37)CN Sec News 1st Settle Date 08/23/2016 Reporting 38) HDS Holders 1st Coupon Date 301) Expand Panel 300) Edit Panel 66) Send Bond Security Search Totals Cash 11) CXO US 12) EDEUS 13) FCX US 10 KMI US 15) NEE US SPY US HABT US INDM US MGPT US 20) KWIE US 21) ATHM US 22) TVA 5.88 04/01/36 23) WM15 01/27/14 24) MPI 130221/36 25) 16) 172 13) 36)CF Last Update 04/18/2019 1001 4/18 17:14 1000 4/18 17:13 Suggested Functions 881 TGI 17:52 Telegraph (IN): Jet frequent fliers worried over points 880 BLW 17:52 State of Wayfair: Alabama, Colorado Bills Continue to Advance (1) 879 APW 17:51 Judge: Student in T-shirt Lawsuit Won't Be Named 878 TWT 17:51 Reuters Top News: Risk of U.S. 'profit recession' eases as results Suggested Functions GP Chart securities & technical studies CRPR Analyze credit ratings for a debt issue PTO Bloomberg Bloomberg < > AUTOHOME ING ADR Equity PRTU Related Functions Positions Saved 2 Actions Portfolio Name 002 Date 1< < 02/10/18 Rebalanced 02/10/18 > Positi Security ID Search Totals Cash 11) EXO US схо DEUS EDF D (FCX 14 KMI NET US NEE 16) BY US SPY 17) 1 INOM TNDM 19) MGPT US MGPT 20) KWET US KWEB 21) ATHM 22TVA S.HR 04/01/16 88059105 23PIMSCD5,000 07/01/222189 IGP < > TVA 5.88 04/01/36 Corp DES - Related Functions Menu TVA 5.88 04/01/36 $1131.965 +.468 Message CO2 TVA 5.88 04/01/36 Corp 131.701/132.229 At 14:00 3.402/3.368 Settings Actions Source BVAL Page 1/12 Security Description: Bond 25) Bond Description 26 Issuer Description 94 Notes 95) BUY 96) Set Pages Issuer Information 11) Bond Info Name 12) Addtl Info Identifiers TENN VALLEY AUTHORITY ID Number Industry Government Agencies DDO109676 13) Reg/Tax CUSIP 880591059 14) Covenants Security Information ISIN US8805910597 15) Guarantors Mkt Iss US Domestic Bond Ratings 16) Bond Ratings Country US Currency USD Moody's Aaa 17) Identifiers Rank Sr Unsecured Series Fitch AAA 18) Exchanges Coupon 5.880000 Type Fixed Composite AAA 19) Inv Parties 20) Fees, Restrict Con Freq S/A Issuance & Trading 1 Day Cnt 30/360 21) Schedules Amt Issued/Outstanding Maturity 04/01/2036 22) Coupons USD 1,500,000.00 (M)/ Quick Links USD 1,500,000.00 (M) 32) ALLQ Pricing Iss Sprd Min Piece/Increment 33) QRD Qt Recap Calc Type (1)STREET CONVENTION 1,000.00 / 1.000.00 07/17/1997 Trade Hist 34) TDH Pricing Date 07/23/1997 Par Amount 1,000.00 35) CACS Corp Action Interest Accrual Date Prospectus 07/23/1997 Book Runner 36) CF TRACE Sec News 1st Settle Date 10/01/1997 Reporting 38) HDS Holders 1st Coupon Date SHORT 1ST CPN. $1.25B ISS'D IN EXCH FOR TENN VALLEY AUTH 5.98 BONDS DUE 301) Expand Panel 66) Send Bond 4/36 EFF7/16/97. ADD'L $250MM ISS'D EFF 7/97. 300) Edit Panel 0.000 10.000 TO,000 10.000 10.000 10.000 0000 10.0000 10.000 10.0000 10.0000 HABTU HABT USOS278... 0000 2.0000 1.0000 Last Update 04/18/2019 17:44:59 1001 4/18 17:14 Bowen Liu/Baci 1000 4/18 17:13 Bowen Liu/Bach 37) CN Suggested Functions PTD See portfolio trade Bloomberg 850 FLY 17:47 so: Southern Company to sell Nacogdoches Generating Facility for 849 DML 17:47 Daily Mail: Jeremy Vuolo reveals that he TELLS wife Jinger Duggar 848 TOR 17:46 Toronto Star: Americans' energy use surges despite climate change 847 TOR 17:46 Toronto Star: New NAFTA will have positive but small impact on U.S Suggested Functions GP Chart securities & technical studies GY See if yields are historically follow 6 Bloomberg WMT 5' 03/27/34 Corp DES - Related Functions Menu WMT 5 58 03/27/34 1142.726 At 16:57 WMT 5 53 03/27/34 Corp Settings +.519 Message Got 142.272/143.179 2.270/2.212 --x-- Source BGN Page 1/12 Security Description: Bond 94 Notes 95) Buy 96) Sell < > AUTOHOME INC-ADRE Positions Sau Portfolio Name Date Rebalanced 00 Ratings Actions 25) Bond Description Pages 26 Issuer Description 11) Bond Info Issuer Information 12) Addtl Info Name WALMART INC Identifiers 13) Reg/Tax Industry Mass Merchants ID Number EH7662925 14) Covenants Security Information ISIN XS0419834931 15) Guarantors Mkt Iss Global FIGI BBGOOOOY3657 16) Bond 17) Identifiers Country US Bond Ratings Currency GBP Rank Moody's Aa2 Sr Unsecured 18) Exchanges Series AA 19) Iny Parties Coupon 5.625000 Type Fixed Fitch AA 20) Fees, Restrict Cpn Freq S/A DBRS АА 20 Schedules Day Cnt ISMA-30/360 Iss Price 98.98100 Issuance & Trading 22) Coupons Maturity 03/27/2034 Reoffer 98.981 Amt Issued/Outstanding Quick Links BULLET 1,000,000.00 (M)/ 32) ALLQ Pricing Iss Sprd +195.00bp vs UKT 4 3 06/07/32 1,000,000.00 (M) 33) QRD Qt Recap Calc Type (1)STREET CONVENTION Min Piece/Increment 34) TDH Trade Hist Pricing Date 03/20/2009 50,000.00 / 1,000.00 35) CACS Corp Action Par Amount 1,000.00 03/27/2009 Prospectus Interest Accrual Date 03/27/2009 Book Runner JOINT LEADS 37) CN Sec News 1st Settle Date Multiple 09/27/2009 Exchange 38) HDS Holders 1st Coupon Date 66) Send Bond 300) Edit Panel 301) Expand Panel but the o S&P Security Search Totals Cash 11) OXO US 12) EDF US B) FOX US 10) KMI US 15) NEE US 16) 17) 38) INDS US 19) GPLUS KWEET US 21) ATHNUS 22) IVAS 06/01/36 20) GBP GBP US 20) EN FC KORT NEE SPY HABT TNDM MGPT KWEB USO5272 8805910 XS04198 36) CI Last Update 04/18/2019 17:50:07 1001 4/18 17:14 Bowen 1000 4/18 17:13 Bowen L 870 CNN 17:50 CNN: Man gets pulled over on his way to a job interview. 869 NYT 17:50 Three Mountain climbers Missing After an Avalanche in Canada 868 BMP 17:50 Moody's downgrades Grundy, Kendall and Will Counties CCSD 201 (Min 867 CBC 17:50 CBC: Petty Harbour restaurant flooded with calls as it prepares 1. 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