Viewpoints about Interest rates
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Regional bank failures create potential risks and opportunities for investors
The failure of several banking entities in just a few days has spurred extraordinary measures from U.S. regulators, but investors remain skittish. Read more on how these events shape our outlook for the banking industry.
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Assessing the contagion risk from ongoing banking concerns to Asia
Trouble in the banking sector on both sides of the Atlantic has sparked fears of broader contagion. To what extent will these developments affect Asia's economies? Read more.
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Three questions for the Fed in the lead-up to its March meeting
Fears that financial stress in the system could morph into a banking crisis have sparked speculation that the Fed might make a dovish pivot at its March meeting. We take a closer look.
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Global market turmoil—what does it mean for Canada?
Concerns about the U.S. banking sector have led to wild market swings across the globe. Looking beyond the immediate market reaction, we examine how recent developments might affect the Canadian economy and its banking sector.
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A framework for navigating a massive uncertainty shock
The closure of tech-focused lenders in the United States has left investors on tenterhooks even as policymakers work hard to contain potential spillover effects. Find out how recent events could affect the U.S. economy.
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Duration calculation: Three-minute macro
Managing duration risk is important for all portfolios, so we modeled duration risk in equities. We also shed some light on what tech layoffs mean (or don’t mean) for the wider economy. Finally, we explain why the Bank of Canada’s aggressive monetary tightening relative to its peers may not be enough to prevent a recession.
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Goodbye, negative-yielding debt: Three-minute macro
The era of negative-yielding debt is over, but we’re more focused on how debt issuance and rising rates will increase government debt burdens (and what that means for investors). Our eyes are also on Europe, where we’re cautiously optimistic in the short term. Finally, we’ve got some good news for bond investors.
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Trigger rates: an upcoming risk to the Canadian housing market
Rising interest rates are putting a damper on the Canadian housing market as mortgages become more expensive for potential buyers. But there's more to watch: Trigger rates in variable rate mortgages may add to housing woes. Might this be a cause for concern in the Canadian economy?
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The high-yield market isn't signaling a recession
Through the interest-rate volatility and higher inflation so far in 2022, we haven't seen a reason to abandon high yield. If anything, the higher-quality segment of this market could provide a welcome boost to a portfolio's risk-adjusted return potential.
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The Fed remains hawkish, but easing could occur in 2023
The U.S. Federal Reserve's decision to hike rates by 0.75% shouldn't surprise anyone—it was widely expected; however, the bank's latest economic projections caught markets off guard. Read more.
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