Category Archives: Fixed Income

What’s the Canadian Preferred Market Made Of?

Shift in the Makeup of the Preferred Market As we noted in an earlier post, the Canadian preferred share market has undergone a significant expansion over the past five years, approximately doubling in market size.  In addition to the growth of the market, the Canadian preferred market has seen a shift from most outstanding preferreds Read more […]

Retail Sales Hop Before the Easter Weekend

Treasuries closed the week returning 1.02% as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index.  Last week’s return was the strongest weekly return since the flight to safety trade driven by Ukraine / Russia news from the week of March 14th, which remains the largest weekly gain for the year. This week Read more […]

Introduction to Preferred Shares in Canada

What are Preferreds? Preferred shares are hybrid equity securities, with characteristics that lie between the traditional fixed income and equity asset classes.  Like common shares, preferred shares represent ownership in a company and are listed as equity on the balance sheet; the ownership isn’t entirely the same though.  Preferreds have preferential rights to dividend payments Read more […]

S&P 5-YEAR DIVIDEND SNAPSHOT (and know when your paycheck comes in)

March marked the fifth anniversary from the Bear market low. Dividends have not only recovered from their bottom, but are setting new records. Yields are less, but relative to other instruments they remain competitive, and have a much lower tax rate. Two observations that became apparent are the risk-reward trade off and the yields. For Read more […]

U.S. Domestic Dividends Set Record Increases

Data is for U.S. Domestic Common Stock, not just the S&P 500 U.S. domestic common issues set a first quarter record for dividend increases, as the ‘shareholder’ return theme continued. Increases have been made easier by record earnings and record cash holdings. Additionally, many issues (especially large-caps) have heard the knocking at the boardroom door Read more […]

March On

TAKEAWAYS & FYIs (commentary): U.S.-Russian relations continued to decline, but markets didn’t see it as major issue; European markets have been more concerned about oil and gas sales from Russia, as Russia needs the currency and Europe needs the products The Fed moved the conversation from stimulus ending to increasing interest rates, but after an Read more […]

What’s In Their Wallet?

S&P 500 Industrials have easily set a sixth consecutive quarterly record for cash and equivalent on hand (under current assets, mark-to-market), sitting on what amounts to 94 weeks of net earnings (latest 12 months). The $1.3 trillion is not making much as it sits in short-term investments or banks, regardless of its U.S. or foreign Read more […]

2013: A year in SPIVA Perspective (Part I)

2013 was the blockbuster year for equity as the domestic equity markets posted double-digits returns.  In a year marked by record breaking gains, it is particularly important to measure the relative performance of active funds versus the indices as bull markets often present challenging conditions for active managers to overcome. The 2013 year-end SPIVA report Read more […]

The Fed’s March Rate Decision Could Determine If This Week Is A Lion or A Lamb For Bonds

Treasuries closed the week returning 1.32% as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index.  The index is now returning 0.18% for the month and 4.13% year-to-date.  Continued concerns over the Ukraine political situation may have led to a demand for Treasuries as a flight to safety trade.  The auctions of $64 Read more […]

A Bang not a Whimper

Whenever this bull market ends, it is likely to be with a bang, not a whimper. The bull market began on March 9th, 2009, five years ago.  The last bull market lasted exactly five years from October 2002 to October 2007; the one before that – the great tech boom – lasted 10 years. This Read more […]