(i) Benchmark securities serve as a general indicator of the level and directional movement of the overall debt market. In the Canadian fixed income market, benchmark (also known as bellwether) securities are the current 3-month, 6-month, and 1 Year Government of Canada Treasury Bills and 2-year, 3-year, 5-year, 10-year and 30-year Government of Canada Bonds. Benchmark Treasury Bills and Bonds are often used to determine the relative values of other fixed income securities.
(ii) CanDeal provides institutional market participants with an electronic marketplace for Canadian dollar debt securities that delivers optimal transparency, efficient trade execution and unique business intelligence data, while reducing operational risk. Institutional investors from around the globe leverage CanDeal to gain direct access to our dealer network, including all of Canada's Primary Dealers. CanDeal is the benchmark for Canadian fixed income pricing. Sourced directly from our dealer network, hundreds of thousands of price updates are received daily to produce a real-time “bid/ask” composite of the market. For more information or to inquire about further bond information, visit www.candeal.com.
Canada’s June headline inflation rate jumped to an annual 2.5%, up from
2.2% in May, while retail sales jumped 2% in May over April (a 3.6% annual
rate). The two datapoints suggest underlying economic growth, despite
continuing anxieties over trade and tariff tension with the U.S., and set
the stage for another interest rate hike by the Bank of Canada in
September. Toronto’s benchmark
S&P/TSX Composite Index
dropped 0.8% on the week, as
edged down, falling 0.2%, while the retreating energy sector dragged on
overall index performance. In the U.S., the major stock indices ended the
week just about flat, as U.S. President Donald Trump’s trade and tariff
salvos against China and other trading partners, such as Canada and Mexico,
continue to unsettle investor sentiment. As the U.S. dollar weakened in
reaction to Trump’s accusations of currency manipulation by the E.U. and
China, both the
S&P 500 Composite Index
remained flat on the week, despite some strong earnings reports from the
Microsoft Corp. (NASDAQ: MSFT).
– We’ve decided to sell our summer cottage, which has been in the family
for about 50 years. We understand there will be some capital gains tax to
pay, but is there any way to reduce the tax bite? A neighbour told us about
something called the Adjusted Cost Base, but we’re not sure what this is or
how it works. – Lynn R., Lindsay, Ontario
When you hear the phrase “discretionary family trusts,” you’ll probably
first think of trust fund babies, offshore accounts, and tax havens – in
other words, something used only by the ultra-rich. But surprisingly,
family trusts can be a useful estate and tax planning tool for every
family, not just for the wealthy. Here’s a look at the reality behind the
myth, and how using a corporate beneficiary can help get around the
non-resident tax trap.
RBC O’Shaughnessy Canadian Equity Fund
is managed by
using the proprietary methodology that he developed and laid out in his
bestselling book, What Works on Wall Street. Essentially, he and
his team screen the stock universe on several factors that historically
have been found in stocks that outperform.
One of my favorite definitions of risk and uncertainty comes from a book by
Nate Silver entitled The Signal and the Noise. He defines risk as
the grease that facilitates economic activity, whereas uncertainty grinds
things to a halt. According to a popular index developed by Professors
Baker, Bloom, and Davis, Canada’s economic policy uncertainty has moved to
new highs in 2018 after rising for the past several years (see the Chart 1
below). No wonder the Bank of Canada (BoC) has been sounding so cautious
even though Canadian economic data remain firm.