Foreigners are gobbling up Canadian debt, and there's a good reason.
If you're retired and living off the interest you receive from your fixed income investments (regardless of what the interest rate is), your capital is dropping in value every day. This drop in value is not noticeable on your statement, but is certainly noticeable when spending your money.
The first step is to devote just enough funds in short-term vehicles or ones that mature when you need specific payments. Pension funds have been using the strategy of liability matching, for generations where they meet liability payments with specific investments coming due at that same time.
Argentinians would not need to suffer if assets hidden from creditors could be recovered and, in any case, the country need not default. As a senior portfolio manager at Elliott Management wrote in the Financial Times, Argentina "could easily afford to pay all of its defaulted debt tomorrow."
Just over a year ago, markets went into a tailspin. At that time then-Fed Chairman Bernanke made what was supposed to be a benign announcement that gave new meaning to the word "taper." Currencies were thrust into the mayhem well ahead of the statement becoming action, as markets tried to anticipate the pricing effects of this new monetary regime. Tapering is now well underway; how are currencies weathering the storm?
Greeks will watch the Euro 2012 soccer match between their country and Russia before going to the polls on June 17. If the Greeks lose, the country will vote to stay in the Eurozone. If they win, all bets are off. But, like football, forecasting is impossible (unless the games are rigged) which means that anything can happen. Here are three possible scenarios.
While Principal Protected Notes become more enticing when in we're engulfed in an environment of uncertainty, they are still not widely understood. The key flaw in these products is that they blur what is the most fundamental decision an investor must make -- whether or not to take risk and, if so, how much?
For snowbirds looking to make their annual sojourn to southern U.S. climates, this recent weakness in the canuck buck couldn't have come at a worse time. My advice for those who are going to be looking to convert Loonies for greenbacks is to stagger those purchases over the next few months.
If the mortgage meltdown that nearly laid waste to the global economy a few years ago taught us anything, it's that you should
For many Canadians on a fixed income, the last 10 years have been tough, to say nothing of the most recent couple. In an