Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Columbia Threadneedle on risks and opportunities in fixed income

Monday, June 19, 2017

amb
James Waters
Benedicte Gravrand, Opalesque Geneva:

James Waters, head of the fixed income client portfolio management team at Columbia Threadneedle Investments, told Sona Blessing in a recent Opalesque Radio interview that an active manager could add value with investment grade credit, high yield and some emerging market bonds.

His firm's outlook on fixed income is quite asymmetric, he says. They expect the economies globally to be relatively benign. "But given where yields are at the moment across most fixed income asset classes, we think returns are going to be relatively muted. Now there are some risks around this so if interest rates start to increase more than what's already priced into the market or credit spreads are widen significantly, and there's a big deterioration in the credit worthiness of credit issuers, then returns are likely to move negative. So our base case is for low but positive returns but there are risks around that on either side: if economies start to pick up significantly and policy rates start to increase, or there's a downturn and the creditworthiness of companies start to deteriorate and hence the spreads widen."

He added that political risk has been most elevated this year, mostly in Europe which is seeing several elections. Whereas last year, concerns were around the US election. "There's still uncertainty around the policies that are going to be......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1