Perspectives Blog

June 2013 Archive

Stormy conditions in Puerto Rico

Columbia Management, Investment Team | June 25, 2013

Puerto Rico’s weakening fiscal and economic condition presents serious concerns for municipal bond investors. Investors are attracted by the portfolio diversification and triple-tax-free benefits of certain Puerto Rico debt obligations, but the credit challenges are significant. We believe that rigorous research is essential to identify those opportunities that feature investment-grade characteristics. In December 2012, we

What the NHL playoffs can teach investors

Jeffrey Knight, CFA, Head of Global Asset Allocation | June 13, 2013

NHL playoff teams know the importance of protecting a lead; investors should consider a similar strategy with this year’s stock market gains. Resilient portfolios avoid concentration in one asset class, or any single source of risk. The strong differential performance between stocks and bonds this year presents a timely opportunity to rebalance one’s allocation between

Navigating rising rates

Columbia Management, Investment Team | June 11, 2013

Interest rates will rise at some point; investors must consider how to manage interest rate exposure in their portfolios. Duration can be a highly misleading measure of interest rate risk when making comparisons across products. For fixed income investors, sector exposure matters, and fundamental research can help avoid potholes. By Zach Pandl, Senior Interest Rate Strategist, and

Japan — All in with Abenomics

Fred Copper, Senior Portfolio Manager | June 6, 2013

Japan has gone all-in in their battle against deflation and stagnant growth. Prime Minister Shinzo Abe has committed to a fiscal and monetary blitzkrieg, and there’s no going back. Huge uncertainty and massively divergent outcomes will manifest as continued jaw dropping volatility in the financial markets.   Price return of Nikkei Index, November 2012 —