Perspectives Blog

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…

Outlook for U.S. and global bond markets

Gene Tannuzzo, CFA, Senior Portfolio Manager | September 22, 2014

In the following video, Gene Tannuzzo, senior portfolio manager for strategic income and multi-sector fixed income, explains his outlook for bond markets. Global bond markets have posted strong returns so far in 2014, driven by largely by factors outside of the U.S. Looking forward, we expect U.S. interest rates to rise, and so we are positioning portfolios with a shorter duration. We think it is important for investors to remain flexible to pro…

Q4 fixed income outlook — External influences

Gene Tannuzzo, CFA, Senior Portfolio Manager | September 22, 2014

While the bond market has generated strong returns so far in 2014, we are positioning portfolios with a shorter duration to protect against rising interest rates. Although we think that corporate bonds look better than their government counterparts, the most attractive bond market opportunities may be outside of the corporate market. Investors should remain flexible in order to protect themselves from some of the policy potholes that may lie ah…

Q3 fixed income outlook – The demise of volatility

Gene Tannuzzo, CFA, Senior Portfolio Manager | June 30, 2014

Because yield is an important driver of returns, we believe investors may be better served staying invested rather than sitting in cash or taking a decisively negative position on bonds. History has shown that volatility can stay low for extended periods. In that case, we would expect credit sensitive assets to continue to generate reasonable returns. While we think investors should retain exposure in the bond market, it is important to be flex…

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…