Perspectives Blog

Inflation — The usual suspects

Zach Pandl, Portfolio Manager and Strategist | August 11, 2014

…mics find that inflation is difficult to forecast, that the statistical properties of inflation can change over time, that inflation expectations differ by demographic groups, and that firms take into account morale and other behavioral factors when setting wages. Of course, quantitative easing also exposed some wide differences of opinion on the drivers of inflation among mainstream economists. Even so, we are not entirely in the dark about how…

The beginnings of a new moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 2, 2014

…, the opportunity is for Asia to evolve from a growth slowdown into a sustained period of more moderate yet less volatile growth. The tea leaves are pointing to the right direction, especially as we start to explore corporate behavioral changes that are concurrently taking shape. This will be the topic of the next installment in this series of discussion where we will start to pin down some firm conclusions for investors. The “new moderation” min…

Could tapering be good for stocks?

Fred Copper, Senior Portfolio Manager | December 16, 2013

…quickly fled those markets (stocks, bonds and currencies were all dramatically impacted). When, in seeming response to this market riot, the Fed ultimately didn’t taper, stock markets rallied and interest rates declined. This behavioral pattern would seem to bode ill for equity and bond markets when the Fed finally does taper, which by some speculation will occur as early as this month. However, is it possible that this time could be different, t…

Credit alternatives in government-backed debt

Columbia Management, Investment Team | June 23, 2014

…mpany)/504, and SBIC (Small Business Investment Company) programs. The SBA CDC/504 program provides secured financing for the purchase or improvement of real estate and long-term equipment through 10- or 20-year loans. Assets financed through the program require three parts: up to 50% from a senior bank loan, a maximum of 40% through a junior loan from the SBA, and at least 10% equity contribution from borrower. The SBA loan not only provides a c…

Municipal market ghosts of past, present and yet to come

James Dearborn, Head of Municipal Bonds | December 9, 2013

December 3, 2013 — a seminal day in muni pension discussion. Ghost of Christmas Past – good times were had by all. Ghost of Christmas Present – sobering reality as negotiations continue to go nowhere. Ghost of Christmas Yet to Come – rising above the Detroit debacle. In the annals of public finance history, December 3, 2013, will likely be remembered as a seminal day in which the nature and direction of debate about large unfunded pensio…