Loading...

Blog

Demand Keeps Spreads Tight

Wednesday, August 17, 2011
by Russ MacKay

With the market’s uncertainty of the economic outlook we have seen a huge rally into U.S. treasuries, moving from 3.73% in February of this year to the 2.23% level today.

The demand for fixed income has outpaced the fears of a weak economy as the spreads between the Government 10 year and corporate bonds have not widened as it did in 2008. Today the spreads are sitting at 168 bps and 171 bps for Canada and the U.S. respectively (unlike 2008 when they hit 364 bps in Canada and 450 bps in the U.S.).

You may still find opportunities in the corporate world where wider spreads are available, like the latest issues by Intact Financial, 2021 at 4.70% (225 bps spread), or Goldman Sachs’ 5.00% 2018 issue (255 bps).

Russ MacKay


SUBSCRIBE TO STAY INFORMED

AT CWB MCLEAN & PARTNERS WEALTH MANAGEMENT LTD, WE'RE INVESTED IN YOUR FUTURE.

We're here to act as a sounding board for you on whatever you may need. Whatever your question is, we will ensure we find the right answer for you. Contact us to speak to one of our advisors, sign up to receive exclusive insights, or attend a future event. 


ASK A QUESTION