Missouri Shop Planning Duration Extension Move

  • 25 Aug 2002
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Steven Jones, portfolio manager with Missouri Valley Partners, says that when the 10-year Treasury yield rises to 5%, he will extend the portfolio's duration to 4.30-years from its current 3.90-year duration, or 10% longer, by adding Treasuries. Jones says last Monday's 4.28% Treasury yield is not sustainable, citing his firm's bullish economic forecast. Jones adds that when he hits his 10-year Treasury yield trigger, he will rotate 10% of the firm's portfolio, or $80 million, into 10-year Treasuries. He will finance the purchase by using cash and selling high-grade corporates.

One reason Jones gives for selling corporates is that the firm's portfolio is overweight the sector, holding 46% of the portfolio in corporates versus the 25% weighting of the Lehman Brothers aggregate index. Another factor is that Jones anticipates that with the future economic recovery, corporate spreads will tighten to a point where the sale will make sense. Jones has identified General Electric 6.87% of '10 (Aaa/AAA) which last Monday traded at 110 basis points over the curve. Jones would sell it at 70 basis points off the curve. Another name is Bank of America 7.80% of '10 (Aa3/A) which had a 186 basis points spread over the curve, last Monday. Jones believes that if the Treasury yield hits his 5% target, he may be able to liquidate this name at a 75 basis points spread over the curve.

Jones manages a $800 million portfolio out of St Louis, Mo. He allocates 46% to high-grade corporates, 42% to mortgage passthroughs, 6% to Treasuries and 6% to cash.

  • 25 Aug 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 05 Dec 2016
1 JPMorgan 350,314.87 1563 8.64%
2 Citi 331,807.46 1234 8.18%
3 Bank of America Merrill Lynch 294,072.11 1065 7.25%
4 Barclays 288,574.83 960 7.12%
5 HSBC 246,960.17 1012 6.09%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 06 Dec 2016
1 JPMorgan 42,062.15 71 7.42%
2 HSBC 35,562.34 135 6.27%
3 BNP Paribas 34,319.54 159 6.05%
4 UniCredit 33,240.61 156 5.86%
5 ING 24,131.05 135 4.26%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 06 Dec 2016
1 JPMorgan 17,689.28 94 10.53%
2 Goldman Sachs 14,233.86 73 8.47%
3 Bank of America Merrill Lynch 11,162.65 49 6.64%
4 Morgan Stanley 10,881.99 59 6.48%
5 UBS 9,977.51 50 5.94%