Yields tell you how much money you’ll make off a bond.Yields are important because they help you figure out how much you’ll earn off a bond, and can be used to compare value.
Rising yields and interest rates can send the value of a bond fund down.If you invested in bonds to avoid market turmoil, higher interest rates and yields may bring a bit of a shock. But while no investment in completely risk-free, there are ways to ride out a rising yields storm.
Free trade helps countries exchange goods and services through agreements that everyone can work with. But when protectionism takes hold and tariffs start piling up, trade partners can find themselves in a full-out trade war.
Why do I need to understand negative equity before I sign a car lease?There’s more to car leases and loans than how much you pay each month. Before you sign anything, make sure you understand the math.
Financial bubbles don’t just happen by accident – they’re the result of behaviours humans just can’t seem to shake
Double-counting is artificially boosting the value of the ETF – so when deciding where to invest, make sure you double-check the numbers.
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When people talk about bond yields they’re really talking about yield-to-maturity, or what you will get from a bond at maturity if you buy it at a specific price.
Let’s say you buy a 3-year bond that pays a 3 per cent fixe...
If you invested in a bond fund to avoid drama, the recent rise in yields may have you wondering where in the FinPipe you went wrong.
Perhaps your first mistake was to assume that any investment is completely safe.
Bonds...
Free trade means countries can exchange goods and services without restrictions, helping everyone access what they need and make money selling what they don’t.
Humans figured out the value of trade centuries ago, but as ci...
When you get a loan to help you buy a car, it’s important to understand what you’re signing up for. If you think you can just keep trading in cars through leases and not lose money, you haven’t been told about negative equity...
A “financial bubble” is an increase in the price of a financial asset leading to a price tag that doesn’t reflect the asset’s actual value. Investors bid up the price far beyond economic reality as price increases become self...
The turf war to convince investors about the value of upstart Exchange Traded Fund (ETF) industry over traditional mutual fund providers is getting increasingly muddled by double counting or “fake flows.”
Based on the them...
It’s the final selection, and our bachelorette has given her two last roses to suitors CDOR and CORRA.
At first glance, the two contestants likely to propose didn’t seem that different – both were Canadian-dollar based var...
There are various key benchmarks that banks and other financial institutions use to figure out the rate at which they should lend money.
In the U.S. and Europe, one of the most commonly used is LIBOR, or the London Interba...
When you borrow money from a bank, you usually get an interest rate that tells you what borrowing that money will cost you. With that percentage, you are able to figure out the amount you’ll eventually have to pay back. That ...
Bitcoin’s bubble potential suggests the need for caution – and regulation
Bitcoin’s dramatic rise may have put it in the cryptocurrency spotlight early on, but it’s the underlying blockchain technology that will continue to shape industries like financial services, regardless of what digital curren...
Canadian Exchange Traded Fund demand had a banner year in 2017, but the upward trend should ease in 2018 as expected headwinds make a repeat of last year’s levels unlikely.
Net inflows of $26 billion into the ETF industry’...
It’s become impossible to talk about the markets in 2018 without mentioning bitcoin. But the digital currency’s worth and its uses seem to remain a mystery to many of the very investors whose fear of missing out is nudging th...
Economic theory and economic reality don’t always match up perfectly.
While theories like trickle-down economics suggest corporate tax cuts will eventually benefit the rest of society, it’s hard to predict what other fact...
The celebrations following Canada’s biggest maple deal were a lot more low-key than you’d expect.
One drink, shared among a handful of colleagues who’d been in the trenches putting the $2.5 billion deal together.
While ...
Regulatory changes and market conditions have decreased liquidity in the secondary bond market, even as new issues remain strong. While market players generally agree that liquidity is important for the fixed-income market, t...
The Walt Disney Company jumped into the maple market, following other U.S. giants like Apple and McDonald’s in what is shaping up to be one of the busiest years for foreign-issued bonds.
The company had initially aimed to ...
When Apple decided to issue bonds in the maple market in the summer of 2017, the deal was greeted with open arms by Canadian investors thirsty for access to such a high-quality foreign issuer.
The diversification the deal ...
The maple bond market had spent a pretty lonely decade going into 2017.
There wasn’t much love shown to this section of corporate bonds since the 2008 credit crisis turned the maple market into a small marketplace that pri...
There’s a certain art to bringing corporate bonds to market.
It’s a journey that comes with equal parts precision and showmanship, and with players whose roles are as different as they are vital.
Unlike a stock, a bond ...
A lot of factors have to come together for a bond to get to market, and while each deal has it own nuances, the overall structure for issuing a corporate bond is typically the same.
Let’s break it down.
New bond issues
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For Canadian companies looking to raise money, tapping into foreign markets is a great way to diversify their investor pool rather than relying solely on a relatively narrow Canadian investor base.
By issuing in the U.S. o...
