D.C. Firm Extends Duration As More Rate Cuts Loom

  • 22 Jul 2001
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Columbia Partners, a Washington, D.C.-based money management firm, has been extending duration on the expectation of another 25 basis point rate cut by the Federal Reserve and a decline in long-term rates due to a worsening economic picture. Bill Wivel, portfolio manager of some $600 million in taxable fixed-income, says he has been buying 30-year U.S. Treasuries and five-, 10- and 30-year high-grade corporates in the financial, drug and consumer products sectors. The moves extended duration from five years in early June to about 5.20 years as of last Monday. The new duration put the firm at 111% of its most common benchmark, the Lehman Brothers Aggregate, which was at 4.7 years last Monday.

Wivel cites a variety of factors, such as rising jobless claims and declining prices on imported goods, as evidence that the economic picture is worsening. He is concerned that if employment continues to suffer consumer confidence will start to fall. He says that if the economy does not improve in one to two months, he will extend duration further by buying Treasuries, though to no more than 120%.

Columbia allocates 34% to U.S. Treasuries, 30% to corporates, 27% in mortgage-backed securities, 7% to U.S. agencies and 2% to asset-backed securities.

  • 22 Jul 2001

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
  • 21 Mar 2017
1 JPMorgan 5,440.56 17 10.74%
2 Deutsche Bank 4,468.97 23 8.82%
3 UBS 3,742.72 17 7.39%
4 Citi 3,393.89 23 6.70%
5 Goldman Sachs 3,360.93 18 6.63%