Notes From The Desk | FOMC Meeting Dec 15 2021

In the land of the bald eagle, the hawks have begun to emerge. · With inflation showing little signs of slowing down, the Federal Reserve has sent a strong signal that they are taking the situation seriously. · The Fed has accelerated the pace of tapering, such that QE should end by mid-March 2022. · […]

Notes From The Desk | FOMC Announcement Dec 15 2021

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 […]

Notes From The Desk | FOMC Announcement Dec 10 2021

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 […]

Notes From The Desk | FOMC Announcement Dec 08 2021

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 […]

Notes From The Desk | Employment Data Dec 03 2021

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%. · […]