Ultra long term bonds that will mature in the end of 2064 were issued by the Government of Canada with a yield of 2.96%. According to the press release by the government – there are two major benefits – one is low cost long term refinancing and
Read more →The central bank is not going to pull any surprise out if its hat this time. A recent Reuters poll showed that Bank of Canada is not likely to increase its interest rate till 2014. The decision to change the rate depends on many factors and Canadian
Read more →Bank of Canada has been running the longest stretch of stable overnight target rate in recent history. There is no end in sight to it. About year and a half ago, Canadian total inflation went negative. At that time the bank said it is a temporary drop
Read more →In the recession of 90’s – everything dropped all of a sudden. Household debt, consumer credit, mortgage credit all of them fell without warning. Inflation took off and so did interest rate. Bank Prime soared to 25% a year. A bleak past, that we do not want
Read more →Rate Competition: In a saturated market it is hard to create new opportunities. Lack of new business drove the lenders in the age-old method of attracting new clients – Undercutting. They started to match rates, even worst – banks started to discount their rates even further. Lenders
Read more →Before the crisis, it took only 2% reduction of asset value to wipe out capitals of the international banks – said Mark Carney, Governor of the Bank of Canada. To protect the financial institutions from a similar disaster in future the international authorities have cranked up the
Read more →The allies in the financial market are full of risks. There are hidden risks and some cannot cloak themselves as they are too big to hide. Canadian economy – although small – faces many risk factors on its way to prosperity (if you can define one). The
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