Tag Archives: canada

Disruptive Opportunities for Nimble Advisors

On June 24th, I had the privilege of participating in the inaugural Canadian S&P Dow Jones Indices ETF Masterclass conference on the topic “ETFs as a Catalyst for Canadian Advisory Growth”. While conversations orbited the general themes of ETFs and indexation, panelists and speakers touched on many topics Advisors are, or should be, thinking about Read more […]

A Time of Disruption and Change for Canadian Financial Advisors

On June 24, 2015 S&P Dow Jones Indices hosted an ETF Masterclass in Canada: ETFs as a Catalyst for Canadian Advisory Growth.  In advance, we believed that what would be top-of-mind for advisors was the use of ETFs for global diversification.  Our panels were also prepared to address proactively positioning their firm for regulatory change, Read more […]

Canada Yields Hit Low And Go Higher

The yield-to-worst of the S&P Canada Aggregate Bond Index touched a low of 1.53% on February 2, 2015 after 10 years of history in which the index’s yield had been as high as 4.96% back in June 2007.  After a solid total return of 4.35% in January, the index gave up a little ground and Read more […]

Freezing Temperatures, Hot Bonds

The current cold snap that has descended upon the east coast of the U.S. has winter temperatures on par with its neighboring country to the north.  In addition to the weather, the Canadian bond market has seen its share of interest, as on Jan. 21, 2015, the Bank of Canada (BOC) cut rates by 25 Read more […]

These Assets Mix With Oil Like Water

While many assets have some relationship with oil, there are varying degrees of correlation and even a few surprises. For example, Canadian equities are more correlated with oil than are the emerging markets and the US equities; Australian equities are barely correlated with oil, and China who is not nearly as big a producer as a consumer is moderately Read more […]

Canada’s Inflation is Heating Up For The Winter

The end of last year saw Canada’s CPI move up from the October level of 0.7 to a 1.2 for December.  Since then it has stepped up in 2014 peaking at 2.4 in June before trending back down to September’s 2.0.  In light of this, the October report of 2.4 came as a surprise to Read more […]

Real Yield and a 14% Return … O Canada

The S&P Canada Sovereign Inflation-Linked Bond Index has returned 1.8% month-to-date and an outstanding 14.87% year-to-date.  Investors of inflation-linked bonds are interested in the real yield which measures a bond’s yield adjusted for inflation.  Canadian inflation (2.1%) has recovered in recent months from the low end of the Bank of Canada’s 1% to 3% target Read more […]

The Effects of Interest Rates on Canadian Preferreds

A consideration to take into account when reviewing preferreds is the fact that they are sensitive to changes in interest rates.  The reasoning behind this is due to the structure of preferreds, as many issuances pay a relatively high dividend based on a percentage of par in perpetuity.  Like bonds, preferreds generally exhibit a negative Read more […]

Applying a Laddering Strategy to Preferred Portfolios in Canada

A laddered preferred portfolio uses the same concept as bond laddering, where a portfolio is constructed with instruments of staggering maturities so that a fixed portion of the portfolio matures each year. Rate-reset preferreds are used in a portfolio laddering strategy since they incorporate a reset date every five years. On the reset date, which Read more […]

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 […]