Fixed Income

Detroit and Stockton are game changers for municipalities in fiscal distress

Columbia Management Municipal Investment Team, | December 22, 2014

Contrary to past experience and conventional wisdom, general obligation bonds are not sacrosanct and very low recovery rates are possible. Pensioners and other politically favored classes are likely to be treated more kindly than bondholders. Chapter 9 bankruptcy appears to be ineffective at addressing underfunded pension liabilities and will likely remain a rarely used option.

2015 Outlook — Same song, slightly different arrangement

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | December 15, 2014

We are as convinced as ever that equities have a significant advantage over other asset classes based on valuation. Managing the risk of simultaneous drawdown across asset classes requires a process to actively de-risk portfolios and a methodology for diagnosing the conditions to trigger such a step. To manage risk and stabilize portfolio values in