Highlights Investment Grade Sector Valuation: Our investment grade corporate bond sector valuation models for the US, euro area, UK, Canada and Australia show some common messages, as markets have adjusted to a virus-stricken world.…
Yesterday, BCA Research's Global Fixed Income Strategy service concluded that among the major countries without negative interest rates (the US, UK, Canada, and Australia), longer-term borrowing rates do not need to fall…
The cyclical sectors of the Canadian economy only represent 24% of GDP, which is in line with the historical average. However, this normal share hides some important disparities which create a large vulnerability for the Canadian…
Last Friday, BCA Research's Foreign Exchange Strategy service highlighted various reasons why the CAD will not benefit as much from a rebound in oil prices as in previous instances. There has been a paradigm shift in oil production…
Highlights Competitive devaluation will remain the dominant policy landscape in the near term. This means that paradoxically, currencies with high and/or positive long-term interest rates remain at risk. The CAD may be the next shoe…
Highlights Inflation-Linked Bonds: The plunging price of oil has put renewed downward pressure on global bond yields via lower inflation expectations. With oil prices set to recover over the next 6-12 months as the global economy…
Despite the weakness in spot oil prices this week, the Canadian dollar has not made new lows. Is this divergence a sign that the CAD could experience a period of strength versus the USD? Energy market-based indicators suggest…
Highlights Oil prices are up strongly from their lows, but conditions for a durable bottom may not yet be in place. The main hiccup is that an air pocket will likely remain under global oil demand until most social-distancing measures…
Highlights The Federal Reserve’s temporary FIMA repo facility will go a long way in helping ease dollar-funding stress outside the US. However, with the duration of the lockdown highly uncertain, a liquidity crisis could…