WEALTH Matters — Fall 2013

INTEREST RATE TRENDS

Bond and GIC yields increased in the 3rd quarter of 2013, with larger increases seen at longer terms. The top 5-year GIC rate reached a high of 2.96% in late September, a level not seen since June 2011, but still well below the 4.65% seen just before the 2008 market crash. One-year GIC rates hit 2%, the highest since the Bank of Canada rate was last raised over 3 years ago to its current level of 1.25%. (Source: Cannex)

Page and Associates ltd:

Phone:    905-884-5563

Fax:         905-884-3365

E-mail:     experience@askpage.com

E-mail this page to a friend

Click here to send your friend or friends a link to this newsletter. Otherwise they’ll have to subscribe for themselves, or wait 3 months to see it in our back issues.

Mutual Funds and Segregated funds provided by Fund Companies offered through

Worldsource Financial Management Inc. sponsoring mutual fund dealer.

All other services provided by Page and Associates Ltd.

Resources

Newsletters

Financial Strategies

Our Team

Our Service

About Us

Home

Resources on financial planning and investment management, including today's best GIC rates, access to your account online, links to a variety of web-based resources.Subscribe to our financial planning newsletter, or read articles from past issues.Read about a variety of financial planning and investment management strategies.Meet the members of the Page and Associates financial planning and investment management team.Find out how Page and Associates can help you plan your financial future.An overview of Page and Associates' history.Home page of the Page and Associates website.

Interest Rate Trends

Investment Market Commentary

BONDS DROP IN 2013

New issues of our quarterly newsletter are only available by subscription. As a subscriber, you have our permission to pass a copy of the current issue or web links to family and friends.

After three months, we add the most recent issue to our online catalog of back-issues, reproduced in the Newsletters section of this website.

Here are the articles in the current edition. Just click the article names to view each one.

GIC rates reflect increases in government bond yields. We wrote in July about comments by Federal Reserve chair Ben Bernanke in May and June indicating the Fed would begin to gradually ‘taper off’ its monthly bond purchases. The 10-year bond yield rose over 1% on this announcement, forcing the Fed to reassure markets that such tapering would be very gradual and would not occur until the US economy showed strong enough employment growth to withstand the tapering. Yields might have settled back down were it not for the US congressional budget stalemate forcing a government shutdown and questions about the US government’s ability to meet interest and principal payments on its bonds. Following resolution of the impasse in mid October, 10-year US bond yields are back down to 2.5% - only marginally above where they were in September 2011.

Richmond Hill’s Top Choice for Financial Advisors in 2011, 2012 and 2013.

The US Budget debate is not over, merely deferred. It will resurface and may rock the bond market again by year-end, though not likely as sharply as this time. The recent market rate increase already factors in modest ‘tapering’ expectations despite slower than ideal economic growth and job creation. As long as the economic recovery doesn’t falter, we expect the Fed to taper off bond buying very gently in 2014 if at all, to avoid yields rising too much above current levels.

My Account | Testimonials | Contact Us | Legal