Bargains in High-Quality Credit? Yesterday, Scotiabank came to market with a $2.25 bn 5y Senior Bond. · The coupon was 2.95% · Credit spread of +132 bps The credit spread is more than double the level from just over a year ago (Feb 2021 ~ 63 bps). Over the same period, BNS stock is up […]

Canadian Inflation – Seals The Deal CAD CPI exceeded forecasts as price pressures are spreading across the economy. · Headline CPI came in at 5.1% (4.8% expected) · Core was 3.3% (3.1% expected) A rate hike on March 2nd should be a done deal, with the only unresolved question being whether the Bank of Canada […]

Canadians & US Employment Update Today’s employment data demonstrates the stark differences in the response to Omicron between the US and Canada. US Employment numbers far exceed expectations: · Employment rose by 467k (125k expected) · Labour Force participation rate – 62.2% (61.9% expected) · Wages rose by 0.7% (0.5% expected) bringing the YoY increase […]

Canadian Inflation & The World Wide Web Canadian CPI clocked in at 4.8% for 2021. The last time it was this high was 1991, the year the internet was made available to the public. While life without the internet would be a struggle, most of us could do without high inflation. The number will do […]

Today’s business outlook survey confirmed that the Canadian economy is at full capacity: · 77% of firms plan on hiring in 2022 · 78% of firms report difficulty in meeting unexpected demand · Labour shortages reported across most sectors · 67% of firms expect inflation to be 3% or higher Conclusions: · The Bank of […]