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
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 14 Mar 2017
1 Bank of America Merrill Lynch 10,650.87 23 11.13%
2 Deutsche Bank 8,169.49 17 8.53%
3 HSBC 6,243.46 23 6.52%
4 Citi 4,355.35 13 4.55%
5 SG Corporate & Investment Banking 4,273.37 17 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Apr 2017
1 JPMorgan 6,719.07 26 8.43%
2 Deutsche Bank 5,994.13 30 7.52%
3 UBS 5,678.69 26 7.12%
4 Citi 4,920.31 35 6.17%
5 Goldman Sachs 4,802.16 24 6.02%