Search results for: household debt

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Reflections on Greece and China

Greece won’t repay its debt without substantial forgiveness. Creditors will realize that repayment of some portion of the debt is better than nothing.

Tagged with: Global Economy

Puerto Rico — Has the default train left the station?

Defaults on all types of Puerto Rico governmental debt appear almost certain. Current investors should brace themselves for an extended period of receiving no interest income and additional price volatility.

Tagged with: Fixed Income, Investing, Municipal Bonds, U.S. Economy

Political and fiscal reality finally trump willingness in Puerto Rico

The Puerto Rican government’s willingness to pay debt service on time and in full was finally overcome by economic and fiscal realities. The shift from impairing only some public corporation [i.e., Puerto Rico Electric Power Authority (PREPA)] debt to all Commonwealth debt was probably inevitable given the unwillingness to make draconian spending cuts, a lack of economic growth and dwindling liquidity across the entire Puerto Rican government complex, including the Government Development Bank (GDB).

Tagged with: Columbia Funds, Economy, Fixed Income, Muni Perspectives, Muni Perspectives Blog, Municipal Bonds

A big bite of the Apple?

We believe that the investment-grade universe has an adequate capital structure that balances shareholders and debtholders, suggesting the credit cycle is in the middle of the expansion stage. While Apple’s rise in debt has significantly outpaced its earnings growth, this is an appropriate capital structure for a maturing company.

Tagged with: Investing

Causes and consequences of Puerto Rico’s sudden decline

The loss of normal market access over the last two years is finally starting to impair Puerto Rico’s ability to finance structural budgetary gaps. It’s difficult to determine ultimate recovery given dated financials, the heavy influence of politics and uncertainty about how various legal pledges will be treated under the fiscal adjustment plan or in court proceedings.

Tagged with: Municipal Bonds, U.S. Economy

Are there cracks in the credit market?

Record new debt issuance, lack of revenue growth, increased acquisition activity, and the re-emergence of debt-financed shareholder returns have caused deterioration in credit metrics. Corporations may not be as close to the end of their credit cycle as the deterioration in credit metrics would imply.

Tagged with: Fixed Income, Investing

It’s back-to-school — but for whom?

Back-to-school time should not only be about preparing for the kids’ current school year but also for their college years and beyond. Gen X-ers and older alums are often shocked when they become aware how much college costs have risen since they were on campus.

Tagged with: 529 Plans, Investing, Tax Strategies

College costs 101

Your child’s dream is to go to college. Your dream is to pay for it.

Greece: Referendum reaction

Greek Prime Minister Alexis Tsipras won a resounding mandate to reject the package of austerity measures on the table in Greece’s referendum yesterday. This is but the latest twist in a road that increasingly seems to be leading towards Greece’s departure from the eurozone.

Tagged with: Global Economy, Monetary Policy

Should investors be worried about consumer borrowing?

Credit to prime and non-prime borrowers is expanding, which is helping support the consumer. Repayment and delinquency data suggest that borrowers are handling most debt burdens relatively well.

Tagged with: Industry/Sector Commentary, Monetary Policy, U.S. Economy
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About Us

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.