Perspectives Blog

Q&A with Jeff Knight

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | November 10, 2014

…rom equities has lagged the profit performance of the underlying companies. Q: How does the strength of the U.S. dollar factor into your asset allocation strategy? A: I still think we need to build our portfolio strategy around equity risk. However, we have to pay attention to the U.S. dollar because the stronger it gets, the weaker any return denominated in foreign currencies will be. We saw this very clearly in the third quarter, which we detai…

Why pay a premium for municipal bonds?

Columbia Management Municipal Investment Team, | December 18, 2014

…y a coupon rate that is higher than current market interest rates and have a market value above 100 cents on the dollar. Par bonds carry a coupon rate equal to current market interest rates and trade at or near 100 cents on the dollar. Discount bonds carry a coupon rate that is lower than current market interest rates and trade below 100 cents on the dollar. Why paying a premium often makes sense: Although paying a premium for a bond at the tim…

Weekly market summary (1/31/14)

Columbia Management, Investment Team | February 3, 2014

Source: Columbia Management Investment Advisers, LLC Past performance does not guarantee future results. It is not possible to invest directly in an index. DESCRIPTION OF INDICES The Barclays U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues with at least $250…

Weekly market summary – 1/24/14

Columbia Management, Investment Team | January 27, 2014

Source: Columbia Management Investment Advisers, LLC Past performance does not guarantee future results. It is not possible to invest directly in an index. DESCRIPTION OF INDICES The Barclays U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues with at least $250…

Release the doves

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | October 20, 2014

The Fed (and all central banks) is highly sensitive to shifts in inflation expectations by either consumers or the markets. The one-year TIP breakeven appears to be pricing in some deflationary pulse and is also pulling down longer term inflation expectations across the curve. My expectations for growth are unchanged at 2.5%-3.0%, but I am concerned there may be some larger shortfall in demand next year for some reason we do not yet know. Whil…

Weekly market summary (as of 1/10/14)

January 13, 2014

Source: Columbia Management Investment Advisers, LLC Past performance does not guarantee future results. It is not possible to invest directly in an index. DESCRIPTION OF INDICES The Barclays U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues with at least $250…

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | November 3, 2014

…gle or $250,000 married filing jointly, he or she will face an additional 0.9% Medicare payroll surtax for every dollar of wage and self-employment income over the threshold. Before 2013, the Medicare hospital insurance payroll tax was a set 1.45%. But starting in 2013, every dollar over the earned income threshold level has the additional 0.9% surtax, so the rate is 2.35% for dollars above the threshold. For dollars below the threshold, the stan…