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
  • 20 Feb 2017
1 JPMorgan 62,591.98 254 8.02%
2 Citi 61,005.69 220 7.81%
3 Bank of America Merrill Lynch 58,608.72 174 7.51%
4 Barclays 54,439.39 163 6.97%
5 Goldman Sachs 46,279.46 130 5.93%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Feb 2017
1 Deutsche Bank 7,631.43 12 11.03%
2 Bank of America Merrill Lynch 4,575.12 14 6.62%
3 Citi 3,984.96 10 5.76%
4 Commerzbank Group 3,849.81 7 5.57%
5 HSBC 3,720.28 13 5.38%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Feb 2017
1 Goldman Sachs 1,774.56 8 9.26%
2 Morgan Stanley 1,728.90 15 9.02%
3 JPMorgan 1,456.77 11 7.60%
4 Bank of America Merrill Lynch 1,450.69 9 7.57%
5 UBS 1,317.06 9 6.87%