Abrupt changes in climate policies from governments around the world could lead to fire sales of climate sensitive assets held by institutional investors, according to a the results of a pilot scenario analysis project from the Bank of Canada and the Office of the Superintendent of Financial Institutions. “Climate transition risks are challenging to assess […]
Consensus is building among Canadian business leaders that inflation will average above three per cent over the next two years, according to a new survey from the Bank of Canada. The survey, which polled business leaders in the final quarter of 2021, found two-thirds (67 per cent) of respondents anticipated that inflation will stay above […]
Central bankers in developed economies are downplaying the risk of long-term inflation rises, according to a new paper by the Fraser Institute. “Absent a sharp reversal of central bank programs of quantitative easing, forecasts that inflation will return to the two per cent target rate of central banks by mid-2022 at the latest are likely […]
As inflation hits a record high in Canada, employers are helping workers weather the storm through various benefits and compensation offerings, according to several experts. In October, the Canadian inflation rate increased year over year by a record 4.7 per cent, the largest increase since February 2003, according to Statistics Canada. The Bank of Canada […]
The average Canadian defined benefit pension plan saw improvements on a solvency and accountancy basis in October, according to LifeWorks Inc.’s monthly report. Its monthly report on DB pension indices found the average plan saw its solvency index rise to 111.5 per cent, up from 108.8 per cent at the end of September and a […]
The end of Canada’s quantitative easing strategy and higher than expected interest rates will be beneficial to Canadian defined benefit pension plans, according to Sebastien Betermier, an associate professor of finance at McGill University’s Desautels Faculty of Management. On Wednesday, Tiff Macklem, governor of the Bank of Canada, announced plans to end its quantitative easing policy and […]
With the federal Liberal Party returning for a third term, the government’s fiscal policy will remain aligned with a social agenda that should, in theory, support continued economic growth and, in turn, create opportunities for institutional investors, says Roshan Thiru, head of Canadian fixed income at Manulife Investment Management Ltd. “The Liberal Party continue to […]
Canada’s economy will undergo volatility and inflationary acceleration as the nation recovers from the coronavirus pandemic, warns the governor of the Bank of Canada. “The process of reopening the economy won’t be entirely smooth,” said Tiff Macklem in a speech announcing the release of the central bank’s monetary policy report. “For example, we are experiencing supply […]
Two Canadian investment leaders endorsed a transition to clean energy at a virtual Davos World Economic Forum on Wednesday as more investors worldwide push for concrete sustainability commitments. Former Bank of Canada governor Mark Carney said that politicians can help markets finance the transition to zero-emission economies by setting credible forward commitments. Canada’s carbon pricing […]
This time last year, the FTSE Canadian universe bond index was yielding a paltry 2.3 per cent and few, if any, anticipated how strong fixed-income returns would be in 2020. Over the year, the index returned 8.7 per cent due to a significant drop in interest rates in the first half as the Bank of […]