Search results for: fomc

A creature is stirring

Last week’s news suggests that the center of the FOMC continues to see interest rate hikes in the middle of next year as most appropriate. December 17 looks like a natural time to begin signaling the possibility of rate hikes to financial markets—an eventuality for which bond investors do not look prepared.

Tagged with: Economy, Fixed Income

Data dependence, broadly defined – Implications of last week’s Fed meeting

Last week’s FOMC meeting was the third largest dovish surprise in the QE era, only bested by the original QE1 announcement and the September 2013 “no taper” decision. We continue to expect the FOMC to hike rates in September, and the pace of rate hikes thereafter should be faster than markets are currently pricing.

Tagged with: Economy, Global Perspectives, Investing

Q3 U.S. fixed-income outlook — Last call

We have become more cautious on the most volatile sectors of the market and have reduced our high-yield and emerging market bond exposures accordingly. Investment-grade credit looks more attractive now, and mortgage-backed securities will likely see less price volatility should bond funds start to see outflows.

| Tagged with: Asset Allocation, Fixed Income, Investing

ECB QE – No green light for interest rate risk

Fed officials should be encouraged by the ECB’s announcement to begin a large-scale bond buying program in an effort to shore up growth and prevent deflation. The action reduces downside risks to global growth, and thus the risks of spillovers to the domestic economy.

Tagged with: Economic/Markets Outlook, Economy, Global Economy, Global Perspectives, Investing

Should you own longer duration bonds in a rising rate environment?

In the next Fed tightening cycle, another “bear flattener” may occur, during which short rates increase and long rates either decline or rise less than short rates. Such a bear flattener is likely to result in long muni bonds outperforming shorter bonds.

| Tagged with: Investing, Monetary Policy, Municipal Bonds, Tax Strategies, U.S. Economy

Bond playbook ahead of the Fed

While we do not expect an interest rate hike this week, investors need to have their eyes wide open about what could happen, and what it means for bond markets. While there are many possibilities for what could play out in the markets, we are focused on what we see as the three most plausible outcomes when assessing the future direction of policy.

Tagged with: Economic Policy, Interest Rates, Investing, Monetary Policy

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Columbia Threadneedle Investments is a leading global asset management group that provides a broad range of actively managed investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $503 billion†† of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

††In U.S. dollars as of June 30, 2015. Source: Ameriprise Q2 Earnings Release. Includes all assets managed by entities in the Columbia and Threadneedle groups of companies. Contact us for more current data.