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Are economic challenges just around the bend? Let us help you steer through the winding road ahead. Set your destination, prepare for some sharp turns, and be ready to recalibrate your portfolios along the way.

Stay on top of the latest news and the events that are driving financial markets with our Volatility toolkit.

The right bonds at the right time

GICs have a place in certain portfolios, but is that place to replace bonds? See why we believe rising rates have created a unique opportunity for investors with an eye on the long-term.

Bond yields are more attractive than they have been in the past

Yields across most, if not all, fixed-income instruments—regardless of maturity, type, or credit quality—have moved materially higher since the beginning of this year.

Various fixed income asset class yield to worst

Yields across most, if not all, fixed-income instruments—regardless of maturity, type, or credit quality—have moved materially higher compared to 2021. This bar chart compares the yields of six fixed-income asset classes in March 2023 to their yields in December 2021. In all six classes, the chart shows that yields in March 2023 are higher than in December 2021. In this phase, investors should focus on the yield provided by the bond or “clipping the coupon.” There’s no free lunch, and to obtain a higher yield, an investor must take on some sort of additional risk, whether it be, duration, credit, or even liquidity. This approach helps mitigate both duration risk from yields continuing to move higher and credit risk if we see default expectations increase in lower-quality bonds.

Proxies that represent these asset classes: Global Bonds- Bloomberg Global Aggregate Bond Index, Canadian Credit- Bloomberg Canada Aggregate – Credit Index, Canadian Government Bonds- Bloomberg Canada Aggregate – Government Index, US Government- Bloomberg US Treasury Index, US Credit- Bloomberg US Corporate Bond Index, US High Yield- Bloomberg US Corporate High Yield Bond Index. As of August 18, 2023.

Take advantage of the opportunity in fixed income

Learn more about the opportunity in fixed income

More Viewpoints on fixed income

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