Last week marked the beginning of an unprecedented one-year program through which the Bank of Canada is purchasing corporate bonds. The program, originally announced on April 15, aims to support the corporate debt market’s liquidity and “proper functioning.” It involves TD Asset Management purchasing bonds through a tender process on the secondary market on behalf […]
In legal circles, it has always been thought that crises breed litigation. And while that appears to be the case in the current crisis, it may not have been the case in the global financial crisis of 2008/9, as pointed out in a recent article by Eric Blinderman, the chief executive officer for the U.S. […]
With air traffic expected to drop by almost 50 per cent in 2020, institutional investors that use aircraft leasing as part of their investment strategies will see compelling investment opportunities, says Justin Bradburn, principal and head of aviation at CarVal Investors. Even when traffic rebounds, airline ticket prices will likely be lower for longer, he […]
In times of crisis, many pension plan sponsors pull back on investing in private equity, including the secondary market, because they’re trying to assess their liquidity needs, says Joseph Marks, global head of secondaries at Capital Dynamics. But this pulling back often happens at a time when they should be putting their foot on the […]
Financial markets are showing signs of concern about how well companies can weather the coronavirus economic crisis, the Bank of Canada said in a report outlining issues the pandemic is having on business and household debt. The central bank has spent the last two months making a flurry of policy decisions that include slashing the […]
During the global financial crisis, certain real estate funds were suspended because of liquidity constraints, but during the coronavirus downturn, it’s valuation uncertainty that’s causing suspensions, says Steve Marino, senior vice-president of portfolio management at Great-West Life Realty Advisors Inc, a subsidiary of the Canada Life Assurance Co. On March 20, 2020, Canada Life announced […]
Since the last financial crisis in 2008-09, the shadow banking sector in Canada has been growing at a rapid pace, which can pose challenges in the current coronavirus crisis, according to a report by DBRS Morningstar. Shadow banking refers to non-bank financial institutions that provide credit and related financial intermediation that aren’t prudentially regulated. A […]
The current market environment isn’t like a regular market correction, but more like a natural disaster, says Joseph Connolly, vice-president of asset and risk management at Morneau Shepell Ltd. In the current context, investors should be doing more monitoring and looking at more timely data because mid-month or mid-quarter results may be stale. “We’re definitely […]
When the coronavirus prompted a collapse in both economic activity and equity markets in March, it put an end to the longest bull market in history. Unprecedented steps by business and governments to slow transmission of the virus all but halted the global economy and adding insult to the viral injury, Russia and Saudi Arabia’s […]
The novel coronavirus has brought with it an unprecedented shuttering of the global economy and an equally unprecedented policy response. The speed and scale at which central bankers and politicians have moved has already surpassed anything seen during the credit crisis. On the monetary policy front, we have seen rates cut to zero, the announcement […]