The Bond Market Prefers Dictators to Democracies

Emerging market bonds from autocratic regimes have outperformed those in democracies over the past year Source: Bloomberg Dictatorships are on a hot streak in the bond market. In the past year, sovereign notes from emerging markets under autocratic rule have returned 15 percent on average, compared with just 8.6 percent for securities from developing countries considered…

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Toronto House Price Boom: How Will It End?

Ted Carmichael analyses the factors contributing to the rising concerns about pricing boom in Toronto Real Estate Market Source: Ted Carmichael Global Macro Last year it was Vancouver house prices. This year it is the Toronto housing “crisis” that has politicians panicking. In March, the average Toronto house price was up 33% over a year ago….

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Investors Warm to ‘Green Bonds’

“Green bond” issuance is growing fast with $150 billion expected to be issued this year Source: The Wall Street Journal “Green bond” issuance is growing fast, part of the overall trend of do-good investments becoming more popular. And U.S. fund companies are looking to tap into investor demand for these bonds, which finance environmentally friendly projects…

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Trump Trade Evolves: Global ETFs Portfolios for Canadian Investors

Leading global ETF performers evolved in 1Q17 that reflected, in part, the markets’ changing assessment of Trump’s ability to implement his election promises Source: Ted Carmichael Global Macro The first quarter of 2017 is in the books, so it’s time to review the performance of our global ETF portfolios. The quarter kicked off with the inauguration…

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Why the Refinancing Slowdown Matters for the Fed

The Fed is expected to slow down their purchase of agency mortgage-backed securities thanks to the refinancing slowdown Source: The Wall Street Journal The Federal Reserve has been buying up fewer mortgage bonds in recent months thanks to a flameout of the American refinancing boom, one factor that economists say is likely to help shape Fed…

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Fintech Platforms Help Regulatory Compliance

Overbond featured in Global Risk Regulator analysis as fintech platform that enhances regulatory compliance and regulatory reporting capabilities for primary bond market participants Source: Global Risk Regulator The market structures that help to mitigate systemic risk could be under threat if financial technology (fintech) firms become too successful too quickly. In a speech given to a…

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Canada to sell record amount of bonds — $142 billion — to fund budget’s deficit-fueled spending promises

Canada’s federal government will issue $142 billion of bonds next fiscal year, $7 billion higher than the previous year’s record, to finance its growing budget deficit Source: Financial Post The amount eclipses the previous year’s record of $135 billion, which was revised up from a projected $133 billion. The bulk of the issuance will be in…

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Chinese Bonds could Trigger ‘Tremendous’ Demand from Wall Street

Foreign investors own just 1.2 percent of China’s $9 trillion bond market, but Wall Street’s attitude toward Chinese bonds may soon change Source: CNBC Suddenly, Wall Street is getting more serious about investing in Chinese bonds. The “potential demand is tremendous,” Rick Rieder, global chief investment officer of fixed income at BlackRock, told CNBC Tuesday. Major…

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