15 Feb

Rate hikes unlikely until second quarter of 2011

General

Posted by: Drummond Team

Benjamin Tal Economic Buzz – 2011 Winter Edition

Article by Benjamin Tal

Deputy Chief Economist, CIBC World Markets

 

The US labour market is gathering momentum with private sector hiring picking up speed throughout 2010.  That uptrend is likely to be sustained as the economy strengthens further this year.  Job gains will support consumption spending, which enjoyed a strong fourth quarter.  Retailers should post decent results in early 2011 as well, helped by the extension of tax cuts.

 

In Canada, employers added 22,000 workers to payrolls in December, with full-time jobs replacing part-time positions, and private sector workers displacing the (relatively lower-paid) self-employed.  Going forward, we expect private sector jobs to lead employment gains in 2011, compensating for restraint in public-sector hiring.

 

Rate hikes unlikely until second quarter

 

After falling for four straight months, November’s rebound in the price of natural gas, along with gains in crude oil prices, should energize Canadian exports.  However, our trade balance will continue to be held down by a relatively elevated Canadian dollar which bites into exporters’ competitive position.

 

As for Canada’s housing market, starts may tick down from November’s rebound as house builders face additional headwinds from tightened policy and potential rate hikes in the second quarter of 2011.  But the Bank of Canada will likely proceed cautiously, wary of tightening too soon and sending the already soaring loonie to new heights.

15 Feb

Mortgage Portability – Different Features & Benefits from Different Lenders

General

Posted by: Drummond Team

Written by Nicole Drummond

 

Most lending institutions, that is banks, credit unions and trust companies, have mortgages that are potentially portable across Canada.  Now, depending on the lender, they all have different features and benefits in regards to porting your mortgage and if you are not aware of the specifics, you could potentially lose money whether you move, refinance or pay off your mortgage completely before the end of your current term.

For more information, please do not hesitate to contact us.

 

Nicole Drummond, AMP

1-800-665-8517 x 225

nicole.drummond@rogers.com

14 Feb

Bond Yield

General

Posted by: Drummond Team

Good morning,

 

The rate of return on your bond, can be read through a yield curve. In finance, the yield curve is the relation between the interest rate (or cost of borrowing) and the time to maturity of the debt for a given borrower in a given currency (taken from Wikipedia). If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders are looking for a spread between 1.35 and 1.55.

 

Please contact me for any questions at 1-800-665-8517 ext. 225.

 

Sincerely yours,

 

Nicole Drummond, AMP