Search results for: quantitative easing

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QE worked, but not as advertised

While QE proved very effective in reinforcing the Fed’s communication about short-term interest rates, there could be simpler ways to achieve the same outcome. The U.S. experience with QE suggests it would be effective in Europe.

Tagged with: Economy, Fixed Income, Investing

Interest rates — Farewell, liquidity trap

The U.S. Treasury market as a whole has returned +1% annualized since the end of 2012 (and +0.5% annualized since the low in 10-year yields in July 2012). Because of imminent Fed rate hikes and depressed yield levels, prospective returns look no better today.

Tagged with: Economy, Fixed Income, Investing

China unpegged?

Despite China’s move last week to devalue its exchange rate, the yuan is still materially stronger against most currencies. What is crucial is whether this move is followed by further depreciation or additional easing efforts.

Tagged with: Currency, Economic Policy, Global Economy, Monetary Policy

Europe – The darkest hour is just before the dawn

The European Central Bank is embarking on quantitative easing at a time when tailwinds are already beginning to build behind the euro area economy. A more constructive economic outlook could have important implications for European markets.

Tagged with: Equities, Global Economy, Global Perspectives, Markets

Should investors be cheering Japan’s new stimulus program?

Stock markets rose on the announcement that the government of Prime Minister Shinzo Abe was significantly stepping up its policy actions. The other major announcement was that the Government Pension Investment Fund will shift its asset allocation to domestic equities and foreign bonds/equities away from domestic bonds.

Tagged with: Equities, Global Economy, Investing

Market volatility: Goldilocks in peril?

We have been in a “Goldilocks” economy, where growth was persistent, but still modest enough to be supported by central bank easing at any sign of weakness. That backdrop is changing, with stresses emanating from the emerging markets and limits to incremental central bank actions.

Tagged with: Economy, Global Economy, Global Investing, Investing, Markets

Making sense of negative interest rates

Buying bonds at negative rates is a guarantee of losing money in nominal terms.
Central banks must keep real rates low to help their economies reach a self-sustaining growth path. Investors should focus on asset classes that benefit from this growth rather than providing the free money to support it.

Tagged with: Equities, Fixed Income, Global Perspectives, Investing

Q&A with Jeff Knight, Global Head of Investment Solutions and Asset Allocation

Q: What do you mean by “solutions” as referenced in your title and domain of responsibility? A: We use that word to refer to investment strategies whose success and risk are defined in an outcome-oriented way as opposed to a benchmark-oriented way.

| Tagged with: Asset Allocation, Equities, Fixed Income, Global Economy, Global Perspectives, Investing, Markets

In search of bond market liquidity

Liquidity in bond markets does not portend a crisis but does raise the risk of one as policymakers flirt with tighter monetary policy. The only sensible approach is to recognize the lack of liquidity, manage it and ensure there is proper compensation for illiquidity.

Tagged with: Fixed Income

Finding bond opportunities throughout the business cycle

Global bond markets respond in different ways throughout the business cycle. A flexible strategy can adapt its risk complexion to capture opportunities and mitigate downside.

Tagged with: Fixed Income, Investing
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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.