Fixed Income

Treasury Yields and Fed Funds Rates

July 09, 2018 | Author: Edward Kerschner, CFA, and Gene Tannuzzo, CFA | Categories: Chart of the Week, Fixed Income

Treasury Yields and Fed Funds Rates
While interest rate risk may well have moderated, duration driven strategies may still not be optimal in a static or modestly rising interest rate environment. Investors should consider a multi-sector bond strategy that addresses the investment universe through yield, quality and liquidity screens....
READ MORE

Beware of Junk Bonds Today

June 13, 2018 | Author: Edward Kerschner, CFA and Gene Tannuzzo, CFA | Categories: Chart of the Week, Fixed Income

Beware of Junk Bonds Today
Junk bonds typically suffer the biggest losses in an economic downturn. The best case would be that the gains are behind us and spreads remain at this level without any further relative out-performance. However, that seems unlikely considering the market hasn't been able to sustain these tight levels for long historically....
READ MORE

Higher Profitability, Higher Valuations

May 29, 2018 | Author: Edward Kerschner, CFA | Categories: Chart of the Week, Fixed Income

Higher Profitability, Higher Valuations
EM valuations, as measured by the price-to-book value ratio (PB) track profitability, as measured by return-on-equity (ROE). ROE had declined steadily to a low of 9.0% in 2015, well below its 2006-14 average of 13.9%. As ROE improves valuations should rise....
READ MORE

Inflation: The Normal Normal

May 07, 2018 | Author: Edward Kerschner, CFA | Categories: Chart of the Week, Fixed Income

Inflation: The Normal Normal
Since 1750, the average annual change in wholesale prices is 1.7%. For most of U.S. economic history, deflation was as common as inflation and consequently the price level was no higher in 1940 than it had been in 1795. With inflation now seemingly returning to “normally” low levels, investors who rely upon benchmark or benchmark-like fixed income strategies may find themselves, at best, in an extended period of modest income....
READ MORE

Tracking the Agg? Why the bond index may not work for investors

April 23, 2018 | Author: Edward Kerschner, CFA | Categories: Chart of the Week, Fixed Income

Tracking the Agg? Why the bond index may not work for investors
The Bloomberg Barclays Aggregate Bond Index (the Agg) is the basis for financial products that represent large fixed-income allocations for many investors. But investors may not realize how concentrated that index has become....
READ MORE

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. Please call 888.800.4347 or click here to access a prospectus online. Investing involves risk, including possible loss of principal.

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses, which could reduce returns. Indexes are unmanaged and one cannot invest directly in an index. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance data may be higher or lower than actual data quoted. For the most current index performance data please call 888 800 4347.

The content of this presentation is presented for general information purposes only. Nothing contained herein should be considered a recommendation or advice to purchase or sell any security. While the information and statistical data contained herein are based on sources believed to be reliable, we do not represent that it is accurate and it should not be relied on as such or be the basis for an investment decision. The statements and opinions expressed are those of Columbia Management Investment Advisers, LLC and are as of the date of this presentation. All information is historical and not indicative of future results, and subject to change. This presentation may include estimates, projections and other "forward-looking statements". Due to numerous factors, actual events may differ substantially from those presented. Columbia Management Investment Advisers, LLC assumes no duty to update any such statements. Past performance does not guarantee future results.

ETF shares are bought and sold at market price (not NAV) and are not individually redeemable. Investors buy and sell shares on a secondary market. Shares may trade at a premium or discount to the NAV. Only market makers or "authorized participants" may trade directly with the Fund(s), typically in blocks of 50,000 shares.