While massive monetary policy response didn’t drive inflation following the 2008/09 financial crisis, institutional investors are mulling over whether things may be different this time. The global economy has rarely seen such a swift willingness to engage with economic calamity on both monetary and fiscal levels, says Erik Weisman, chief economist and fixed income portfolio manager at MFS […]
Defined contribution plan members are contending with volatile equity markets, ultra-low interest rates and the threat of inflation as the country’s economy begins its tentative recovery. In the first half of 2020, equities took an almost round trip, dropping significantly in the first quarter and recovering to the point that most markets are in neutral or positive […]
The Halifax Port ILA/HEA found a way to provide its defined contribution pension plan members with a defined benefit upon retirement — and it’s been doing so successfully for 35 years. As a private sector multi-employer plan, the pension has about 450 active members, 300 retirees and about $210 million in assets. The DB plan […]
Defined contribution plan members are contending with volatile equity markets, ultra-low interest rates and the threat of inflation as the country’s economy begins its tentative recovery. In the first half of 2020, equities took an almost round trip, dropping significantly in the first quarter and recovering to the point that most markets are in neutral […]
The Healthcare of Ontario Pension Plan is well-known for its liability-driven investing strategy, which helped it successfully weather the 2008 financial crisis. During the coronavirus fallout, in an era of historically low interest rates, the HOOPP is working on developing LDI 2.0. “We’re very focused on liabilities, but what you do when interest rates are […]
The head of the Bank of Canada made an international pitch to his fellow central bankers on Thursday to forge closer ties with average citizens to manage economic expectations through the pandemic, or risk losing public trust and face an existential crisis. Speaking remotely at an annual gathering usually hosted in Jackson Hole, Wyo., governor […]
The Federal Reserve announced a significant change Thursday in how it manages interest rates by saying it plans to keep rates near zero even after inflation has exceeded the Fed’s two per cent target level. The change signifies that the Fed is prepared to tolerate a higher level of inflation than it generally has in […]
The second-in-command at the Bank of Canada said Wednesday that any changes to the underpinning of its monetary policy will be judged against how they affect the distribution of income and wealth in this country. Senior deputy governor Carolyn Wilkins said the various frameworks the bank is considering are also being tested for how they […]
As part of the federal government’s debt management strategy, it’s increasing long-term debt issuance. In particular, the government will be increasing issuance of the 10-year and 30-year bonds for 2020-2021 to an unprecedented combined amount of $106 billion, according to the federal economic and fiscal snapshot from July 8. The issuance is roughly five times […]
The country’s inflation barometer turned positive last month after two months of deflation as the consumer price index increased by 0.7 per cent in June compared to a year earlier, Statistics Canada reported Wednesday. The consumer price index had registered two months of negative readings leading up to June, first with 0.2 per cent annualized […]