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
  • 09 Jun 2017
1 Citi 206,449.53 755 8.84%
2 JPMorgan 192,919.68 823 8.26%
3 Bank of America Merrill Lynch 175,174.46 602 7.50%
4 Barclays 144,195.77 526 6.17%
5 Goldman Sachs 139,497.22 445 5.97%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Jun 2017
1 Deutsche Bank 23,530.61 67 7.96%
2 HSBC 20,994.25 74 7.11%
3 Bank of America Merrill Lynch 20,490.14 49 6.93%
4 Credit Agricole CIB 15,076.29 72 5.10%
5 BNP Paribas 14,834.05 81 5.02%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Jun 2017
1 JPMorgan 10,673.78 46 8.06%
2 Citi 9,632.20 60 7.28%
3 Goldman Sachs 9,310.79 46 7.03%
4 UBS 9,230.61 36 6.97%
5 Morgan Stanley 8,508.94 46 6.43%