Perspectives Blog

Do you know what’s in your short-term bond fund?

Columbia Management, Investment Team | December 1, 2014

High-quality short-term bond funds can provide attractive returns for investors seeking a conservative investment option in today‚Äôs uncertain interest rate environment. Not all short-term bond funds are created equal. Some managers take reasonable, well-diversified risks; others may be tempted to chase yield, with the results being risks that may exceed investor tolerance. Know what you own! By Leonard Aplet, CFA, Head of Short-Duration Fixed…

Fixed income strategies – The pros and cons of generating returns with negative duration

Columbia Management, Investment Team | July 14, 2014

Unconstrained multi-sector bond funds have become very popular due to their flexibility to invest tactically across sectors and manage interest rate sensitivity. While it may be useful for a fixed income manager to employ a negative duration strategy, getting the timing right can be very challenging. With interest rates defying expectations so far in 2014, investors need to ask what should be at the core of their fixed income portfolio. By Kri…

Are financial markets priced for secular stagnation?

Columbia Management, Investment Team | December 15, 2014

The idea that Western economies may have entered a period of secular stagnation has been attracting an increasing amount of attention. If this thesis proves correct, we would expect investment grade credit to produce decent excess and total returns as discount rates fell further in such an environment. Equity valuations look consistent with some probability of secular stagnation, and could therefore still deliver generous returns if global grow…