Perspectives Blog

A primer on preferred securities

Carl Pappo, Head of Core Fixed Income | March 10, 2014

Preferred securities can offer an attractive risk-adjusted yield in a low-yield environment. Straddling the line between fixed income and equity, preferred securities can help diversify core fixed-income portfolios. Investors equipped to analyze and trade these structures are able to find attractive relative value opportunities. Co-authored by Willow Piersol, Senior Analyst As financial institutions raise capital and reduce risk, preferred sec…

When do floating rate loans begin to float?

Columbia Management, Investment Team | July 11, 2013

…lated, corporate and securitized sectors. It includes securities that are of investment-grade quality or better, have at least one year to maturity and have an outstanding par value of at least $250 million. The Barclays U.S. Mortgage-Backed Index measures the performance of investment-grade, fixed-rate, mortgage-backed pass-through securities of the Government National Mortgage Association (GNMA or Ginnie Mae), Federal National Mortgage Associat…

Duration for diversification

Columbia Management, Investment Team | November 19, 2013

…Index (S&P 500 Index) is an unmanaged list of common stocks that includes 500 large companies. The Barclays U.S. Aggregate Index is an index comprising approximately 6,000 publicly traded bonds, including U.S. government, mortgage-backed, corporate and Yankee bonds with an average maturity of approximately 10 years. The index is weighted by the market value of the bonds included in the index. This index represents asset types that are subject…

Casting a wider net for income

Columbia Management, Investment Team | May 28, 2013

To generate sufficient investment income in today’s low-yield world, you may need to look at new sources of income. Many corporations are currently awash in cash and offer investment opportunities across the capital structure. Floating rate loans, corporate bonds, convertible securities and dividend-paying stocks each offer specific advantages. In today’s low-yield world, advisors and investors alike are looking for income. And while the…

Navigating rising rates

Columbia Management, Investment Team | June 11, 2013

…Index (S&P 500 Index) is an unmanaged list of common stocks that includes 500 large companies. The Barclays U.S. Aggregate Index is an index comprising approximately 6,000 publicly traded bonds, including U.S. government, mortgage-backed, corporate and Yankee bonds with an average maturity of approximately 10 years. The index is weighted by the market value of the bonds included in the index. This index represents asset types that are subject…

Compelling opportunity in municipal bonds

Catherine Stienstra, Senior Portfolio Manager | November 7, 2013

…reversed course, increasing 2.15%, as market fears faded, issuance slowed further and investors took advantage of opportunities to lock in especially attractive interest rates. Spreads widened in lower quality and high-yield securities, as Detroit, Puerto Rico and Illinois pension problems crowded the headlines. Headlines aside, these issues are not representative of the broad municipal market, and the number of municipal defaults is at its lowe…