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More financial institutions are interested in covered bonds, thanks to increasing regulatory capital requirements, the need to re-establish acceptable capital levels in the short term and declining interest in securitized loans.
By Richard E. Austin |June 1, 2011
3 min read
The Bank of Canada may have held the line on monetary policy on Tuesday, but the spectre of rising interest rates continues to hang over Canadian bond investors. Eventually, the Bank will make its move, wiping out billions in capital value. Fixed income investors should look further afield to protect their portfolios, as global bonds […]
By Staff |May 31, 2011
2 min read
Industry
Reader alert: Look for an analysis of covered bonds in the June edition of Advisor’s Edge Report. Fulfilling a promise made in the March 2010 budget, the Department of Finance has published a consultation paper that proposes a legislative framework for Federally Regulated Financial Institution (FRFI) to issue covered bonds. Covered bonds are debt securities […]
May 20, 2011
1 min read
Economic Indicators
Canadian investors in global bonds should keep an eye on recent events in Europe, but they shouldn’t lose sleep over the U.K. budget or the fall of Portugal’s government, according to fixed income experts. However bond pundits admit that tight fiscal policies are a negative for currencies. “The bad news is that historically when you […]
By Vikram Barhat |March 25, 2011
The crisis of 2008-09 sent investors on a mad search for safety and a huge number of them sought refuge in bonds. Fixed income led mutual fund sales since the crisis, driving the price of bonds higher and yields lower. Some have suggested fixed income poses a threat as the next bubble.
By Steven Lamb |January 11, 2011
5 min read
Bonds are boring, but they also may be the single most important asset class in the coming year, according to two seasoned strategists. The Empire Club of Canada, held its annual outlook luncheon in Toronto on Thursday. Despite a massive rally in stock markets, the tone was quite bearish. Peter Gibson, managing director of portfolio […]
By Mark Noble |January 8, 2010
6 min read
With 2009 all but written up in the history books, market watchers are turning their eyes toward 2010. Given the tumult of the past year, with markets cratering in March only to roar back through the second and third quarter, a period of sedate returns is likely welcome. Investment returns for 2010 will be driven […]
By Steven Lamb |December 10, 2009
In the fall, a high yield bond fund manager had the appeal of a plague bearer, today the asset class is driving stellar returns and attracting money as it comes off record lows. While high yield bonds have gained a lot of ground, one veteran high yield strategist says there’s still opportunity in the space. […]
By Mark Noble |July 24, 2009
4 min read
As the last vestiges of a rather cold winter come to an end, I wonder if the chilling price drops in equity markets may at long last be ready for recovery. At the end of February 2009, the S&P 500 index was 50% below where it was in March 2000. Since then, March came in […]
By John Nicola |June 1, 2009
The corporate bond sector has bounced back in this latest broad market rally reaffirming a belief among investment strategists that the asset class had too much risk. “Our philosophy has been to overweight spread product throughout the cycle,” says Darcy Briggs, vice-president and portfolio manager with Bissett Fixed Income management team, a subsidiary of Franklin […]
By Mark Noble |May 13, 2009
Corporate bonds might be suffering from their worst performance ever, but there’s a silver lining. Today’s investors are compensated with a significant risk premium for investing in shortand mid-term corporate bonds (corporates) over similar term Canadian government bonds (Canadas). Yield spreads for corporates in Canada have moved sharply higher due to a number of factors: […]
By Hanif Mamdani |February 1, 2009
(April 2008) With more investors turning away from risk and investing in government bonds, one debt instrument that has fallen out of favour with investors is the maple bond. In the last six months of 2007, there were only 15 Maple issues worth $4.9 billion; that’s a 53.8% drop over the same period in 2006. […]
By Bryan Borzykowski |April 21, 2008
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