Search results for: treasuries

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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

Global asset allocation update (March 2015)

Thank you for your continued interest in the research and insights from Columbia Threadneedle Investments.  Our Global Asset Allocation team continually monitors global economic and market conditions in order to develop our Investment Strategy Outlook.  If you would like to subscribe to this publication,  please click here. Source: Columbia Management Investment Advisers, LLC.

Tagged with: Asset Allocation, Equities, Fixed Income, Investing

Global asset allocation outlook (February 2015)

Last year, U.S. stocks had the best returns among major equity markets across the world. Much of this difference in performance was driven by the strength of the dollar which resulted in negative returns for most developed international and emerging market equities, with a handful of exceptions such as India.

Tagged with: Asset Allocation, Global Perspectives, 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

What has really changed in markets?

With markets in turmoil, it is worth asking what has really changed — and as such whether market falls reflect opportunities or signal threats to patient long-term investors. In our view, there are three medium-sized challenges facing markets for some time that intersect and were brought into sharp focus by the Chinese currency devaluation.

Tagged with: Commodities, Economy, Equities, Global Economy, Global Investing, Industry/Sector Commentary, Investing, Markets

The bond bear that cried wolf

For the past several years, bond bears regularly cautioned the Federal Reserve’s zero-interest-rate policy was unsustainable, calling for higher rates in the foreseeable future. Bond investors have become gradually more cautious over the past year. In contrast, until the past month, equity markets had not discounted an initial round of Fed tightening like other markets.

Tagged with: Economic/Markets Outlook, Equities, Fixed Income, 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

2015 capital market assumptions: Mid-year update

We retain very modest expectations for total returns from traditional fixed-income assets. Equity returns appear attractive relative to fixed-income returns but are accompanied by much higher volatility, including periods of harsh drawdowns.

Tagged with: Asset Allocation, Economic/Markets Outlook, Equities, Fixed Income, Global Investing, Investing, Portfolio Strategies

Columbia Threadneedle Investments muni fund exposure to Puerto Rico — August 31, 2015

The following table illustrates Columbia Threadneedle Investments municipal bond mutual fund exposure to Puerto Rico issuers — including GO debt and issuers that do not directly rely on Commonwealth General Fund support to pay debt service. While we acknowledge that there is an elevated degree of economic and political linkage between all credits issued on the Island, consideration should be given to the structural and legal separation of some credits.

Tagged with: Columbia Funds, Fixed Income, Municipal Bonds, Uncategorized

Do rising rates mean doomsday for bonds?

The Federal Reserve’s low interest rate policy will eventually end and rates will likely rise. As rates rise, bond investors get to invest their coupon income at the new, higher yields.

Tagged with: Fixed Income, Interest Rates, Investing, Muni Perspectives, Muni Perspectives Blog
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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.