Perspectives Blog

Obamacare’s insurance exchanges

Columbia Management, Investment Team | December 9, 2013

…hange and what are some implications? Like public exchanges, private exchanges are online marketplaces at which customers select among a range of insurance plans, enroll and pay premiums. Private exchanges, run by the private sector, have been around for years. They are largely exempt from ACA except as to certain coverage requirements. An employer may choose a private healthcare exchange in order to switch from a defined benefit (DB) to a define…

How bad is China’s credit crisis?

Weili Jasmine Huang, Senior Portfolio Manager | February 3, 2014

…me haircut in interest payment. It is believed that the costs will be shared among CCT (issuer), ICBC (distributor) and the local government involved in this business (implicit guarantor). In recent years, China’s trust sector has been one of the fastest growing types of non-bank credit, or “shadow banking” credit, to circumvent the government’s bank loan quota system. Currently, overall trust assets are about Rmb 10 trillion (U…

Rebalancing the U.S. economy

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | January 13, 2014

…rter and looks to decline to something near 3% this year. Receipts are up 13% and outlays are down 5.5% in the last year—this is admirable progress. The easing fiscal drag will add to GDP via less subtraction. Indeed, private sector real GDP growth (GDP less government expenditures) is up 3% in the last 12 months versus overall real GDP at 1.7%. With the fiscal drag receding, monetary policy will also begin to normalize, providing less accommodat…

Investing selectively in Asia

Soo Nam Ng, Head of Asian Equities | July 14, 2014

Beneath the surface of slowdown headlines lay pockets of exciting growth opportunities. As companies step back from chasing revenue growth and start emphasizing profit delivery, better cash flows and dividend payouts typically follow. We see the greatest contrarian opportunities in sectors where market sentiment has been most depressed. In my previous two articles, I argued that big picture conditions for more sustainable growth are beginning…

Biotech’s beneficiaries: How outsourcing is improving the sector and spreading the wealth

Aaron Reames, Senior Equity Analyst | February 24, 2014

Conditions favor biotech outperformance of broader markets for at least a few more quarters. Outsourcing offers biotech firms varied advantages, from cost reduction to enhancing credibility. The sector’s success and the outsourcing trend is fueling ancillary businesses, notably specialty REITs, CROs and research tools companies. As biotech indices continue to surpass all-time highs, one must contemplate if there is additional room to run. We c…

Quality milestone in the European recovery story

March 17, 2014

…nce in banking and telecoms. By Paul Doyle, Head of Europe ex. UK equities and Frederic Jeanmaire, Fund Manager, Threadneedle Investments After 18 consecutive negative months, the flow of eurozone bank loans into the private sector finally turned positive in January. This marks a milestone on the path towards Europe’s economic recovery. The turning point in the continent’s fortunes was July 2012 when European Central Bank (ECB) President Mario D…

Opportunities in global infrastructure

Peter Santoro, Senior Portfolio Manager | February 3, 2014

…wastewater treatment coverage nationwide and 90% in urban areas, a huge step up from current levels. India • An expected $1 trillion (USD) is expected to be spent on infrastructure with approximately 50% funded by the private sector via the use of PPPs (Public Private Partnerships). • India’s largest investments in infrastructure by sector are in electricity at 33.5%, roadways at 16.6% and railways at 13.7%. United States • In 2009, the federal g…