Perspectives Blog

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 Gene Tannuzzo, Senior Portfolio Manager It’s time for investors…

Duration for diversification

Columbia Management, Investment Team | November 19, 2013

…cation. Because of the negative correlation between duration and the returns of riskier assets, high-quality fixed income will still be a cornerstone of any disciplined portfolio. By Zach Pandl, Senior Portfolio Manager, and Gene Tannuzzo, Senior Portfolio Manager We often hear investors say something like the following: “I own stocks for growth and bonds for income.” But in practice, of course, that is not how it really works. Investors hold po…

Q2 fixed income outlook – Hitting for the cycle

Gene Tannuzzo, CFA, Senior Portfolio Manager | March 31, 2014

…ced supply, labor market improvements and overall confidence. We believe this creates opportunities for bond investors in the non-agency mortgage market, as well as in certain corporate industries. Internationally, growth has generally lagged the U.S. However, we are now starting to see better growth in Europe and Japan which we expect to broaden to emerging markets as well. Following weakness last year, emerging market debt has posted gains this…

Fixed income outlook: From liquidity to growth

Gene Tannuzzo, CFA, Senior Portfolio Manager | July 10, 2013

Bond market performance weakened following Fed comments on tapering QE. Over the next couple of quarters, we expect a transition from a market priced for liquidity to one priced for growth. We believe markets will eventually begin to focus less on the Fed and more on the fundamentals of a slowly improving global growth story. Global bond markets have been under siege for much of the past two months. Looking back to April, the bond market, in o…