Jul 27, 2022 | News and Views, Notes from the Desk
The Federal Reserve raised the target rate by 0.75% to the range of 2.25-2.5%. Chairman Powell confirmed that this is close to neutral. From the press conference: The FOMC is now data-dependant, so the magnitude and pace of future rate hikes is not pre-ordained...Jul 13, 2022 | News and Views, Notes from the Desk
‘Shock and awe’ is a military tactic where overwhelming force is employed to destroy an enemy’s will to fight. Today the Bank of Canada (BoC) deployed the central bank version by delivering a surprise 100bps rate hike. The last time the BoC moved by this amount was...Jun 16, 2022 | Notes from the Desk
Cry Havoc and Let Slip the Dogs of War. Chairman Powell and Co delivered a strong message that the war on inflation was not one the Fed would lose as they delivered a 75-bps rate hike today and signalled that 75-bps was on the table for July. The Chairman also made...Jun 6, 2022 | Notes from the Desk
A Bond Play on the Rogers/Shaw Acquisition. In March 2022, Rogers issued bonds with an interesting clause referred to as Special Mandatory Redemption. If the merger is not concluded by December 31st, 2022, the bonds will be redeemed at $101. Shaw’s equity is roughly...May 13, 2022 | Notes from the Desk
Not On Autopilot – The Bank of Canada amidst the perfect storm. In yesterday’s speech (“the perfect storm”), Toni Gravelle, Deputy Governor of the Bank of Canada shared some insights into the BoC’s thinking. The policy rate needs “to be at neutral levels to help cool...May 12, 2022 | Notes from the Desk
US CPI |Hotter Than Hoped. Although US CPI decelerated in April, it remains far too high: Headline CPI rose 0.3% (0.2% expected) leaving the annual rate at 8.3% (8.1% expected) Core prices rose 0.6% (0.4% expected) bringing the annual rate to 6.2% (6% expected) ...
