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
The Columbia Management Perspectives blog offers our insights on current market events and investment opportunities.
NHL playoff teams know the importance of protecting a lead; investors should consider a similar http://columbiablog.ratchet.com/wp-admin/post.php?post=2576&action=edit&message=1strategy with this year’s stock market gains. Resilient portfolios avoid concentration in one asset class, or any single source of risk. The strong differential performance between stocks and bonds this year presents a timely opportunity to rebalance one’s allocation between
With stock markets pushing all-time highs, it’s tempting for investors to relax and bask in gains. Instead, this should be viewed as an opportune time to protect gains and strengthen portfolio resilience. Modern diversification strategies, macro awareness and active management are vital tools in this process. The financial press has been all a-flutter, of late,
The most recent round of quantitative easing left the bond-buying program open-ended. The Fed could continue QE longer than the market expects, which should lead to lower interest rates, or cut the program off sooner than expected, which should cause interest rates to rise. We see a risk that QE ends sooner than the consensus
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By Zach Pandl, Senior Interest Rate Strategist, and Gene Tannuzzo, Senior Portfolio Manager Interest rates will rise at some point; investors must consider how to manage interest rate exposure in their portfolios. Duration can be a highly misleading measure of interest rate risk when making comparisons across products. For fixed income investors, sector exposure matters, and fundamental
Japan has gone all-in in their battle against deflation and stagnant growth. Prime Minister Shinzo Abe has committed to a fiscal and monetary blitzkrieg, and there’s no going back. Huge uncertainty and massively divergent outcomes will manifest as continued jaw dropping volatility in the financial markets. Price return of Nikkei Index, November 2012 —