Search results for: zach pandl

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What the end of QE means for investors (video)

Watch Zach Pandl, portfolio manager and strategist, explain what the end of the Fed’s Quantitative Easing program means for investors. QE is over because it succeeded, which is good news.

Tagged with: Economy, Investing

Inflation — The usual suspects

Four factors figure empirically into how and why inflation moves: (1) commodity prices, (2) spare capacity, (3) changes in exchange rates, and (4) monetary policy. These same factors argue for a gradual recovery in U.S. inflation in the year ahead, which could be a headwind for high-quality fixed-income returns.

Tagged with: Economy, Fixed Income

2015 Annual Perspectives

Within 2015 Perspectives you will find our views on today’s markets and recommendations for navigating them. The articles represent the depth and breadth of our investment teams, as well as our commitment to delivering timely investment solutions.

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

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

U.S. rates — When the facts change

Prospective returns for Treasuries now look poor across the curve—not just at the front end. Yield curves tend to flatten as central banks raise short-term rates, but valuations have now moved beyond the point where these trades make sense.

Tagged with: Economy, Fixed Income, U.S. Economy

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

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

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

U.S. Rates — The Draghi Floor

ECB action this week maybe not enough to restore confidence by itself, but it signals a readiness to defend the inflation target, thus lowering odds of Japanification. U.S. growth accelerating into September 16-17 FOMC meeting.

Tagged with: Economy, Fixed Income
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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 $506 billion†† of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

††In U.S. dollars as of March 31, 2015. Source: Ameriprise Q1 Earnings Release. Includes all assets managed by entities in the Columbia and Threadneedle groups of companies. Contact us for more current data.