Canadian Inflation Update Today’s CAD CPI data was a non-event in terms of monetary policy. · The headline number of 4.7% was bang on expectations. · In our opinion, the Bank of Canada remains on track to start hiking in April. · Bond yields are essentially unchanged, suggesting the market is comfortable pricing in 4 […]

Back to the Future: US Inflation from hot to red hot · US headline inflation came in at 6.8% and core at 4.9%. · While these numbers are multi-decade highs, they are in line with the consensus expectation. · This does increase the odds of the Fed speeding up their tapering and concluding QE in […]

Rogers Launching First Telco Hybrid Deal Rogers Communications is ‘making more possible’ by launching their first hybrid bond, a halfway house between debt and equity. This should help them maintain an investment-grade rating if the Shaw merger is completed. The Deal Structure · 60-year bond (callable in 5y) with a coupon of 5%. · Counts […]

There is no stopping the Canadian job machine. With several pandemic unemployment support programs ending in October, it appears people decided to take up many of the jobs on offer: · 153.7k jobs created. · Currently, 186K more people are employed than in Feb 2020. · YoY wage growth accelerates from 2% to 2.7%. · […]

Four More Years. Biden nominates Jay Powell for a second term. · Jay Powell to serve a second term as chair of the Federal Reserve. · Lael Brainard, considered the competitor to the throne, assumes the role of vice-chair and is expected to be named vice-chair of supervision (oversees the US banking system). · This […]