Perspectives Blog

2014 outlook for fixed income investors

Colin J. Lundgren, CFA, Head of U.S. Fixed Income | December 20, 2013

Our 2014 forecast for the U.S. economy is optimistic, with more and more of the headwinds that have been restraining growth starting to fade away. For fixed income investors, we see opportunities in corporate bonds, municipal bonds and some emerging markets. Although we expect further rises in interest rates in 2014, bonds continue to offer not only income for investors, but also an important source of portfolio diversification. Watch: 2014 ou…

Special report – 2014 mid-year review and outlook

Columbia Management, Investment Team | June 16, 2014

…bank actions will continue and perhaps accelerate, particularly in Japan, China and the eurozone. Taxable bonds Colin Lundgren, Head of fixed income Review: 2014 has been a happy new year for taxable fixed-income investors. After experiencing mostly negative total returns in 2013, the surprising combination of lower interest rates and narrower risk premiums resulted in strongly positive total returns across most sectors in the taxable bond marke…

Sizing up the fixed income market

Colin J. Lundgren, CFA, Head of U.S. Fixed Income | September 29, 2014

For the right sized asset manager, disruptions in the fixed income market can create short-term opportunities. Liquidity has deteriorated in recent years and can escalate when a mega manager needs to sell a large position. The case for exercising caution around interest rates is strong, but investors shouldn’t paint all bonds with the same brush. Fixed income investors face some big challenges — low and potentially rising interest rates, poor…

Gut check: The outlook on fixed income

Colin J. Lundgren, CFA, Head of U.S. Fixed Income | February 24, 2014

The next big move in rates may be triggered by concerns about possible future Fed rate hikes. High-quality bonds may struggle to generate coupon-like returns. Emerging markets may ultimately benefit from the synchronized uptick in growth in global developed markets. With nearly two months of the year behind us, we thought now would be a good time to see how the fixed-income market is faring in 2014 and assess our outlook. We asked our investme…

To infinity and beyond!

Colin Moore, Global Chief Investment Officer | October 13, 2014

Financial markets are now questioning the time limit on an infinite QE policy and what lies beyond its expiration. While volatility and corrections are unpleasant, they can motivate investors to focus on fundamental issues such as capital investment and labor productivity. The transition from our focus on extraordinary monetary policy may be painful, but it will be worth it. “To infinity and beyond!” is the catchphrase of Buzz Lightyear, the p…