Winners and Losers in the Bond-Yield Collapse

John Heinzl was kind enough to quote me in his latest piece, Winners and Losers in the Bond-Yield Collapse:

If you haven’t checked guaranteed investment certificate rates recently, you’re in for a shock. After climbing for most of 2018, GIC yields have gone into reverse. A five-year GIC at Tangerine, for instance, now pays just 2.5 per cent annually, down from 3.1 per cent as recently as November. Government bonds are even less attractive. The five-year Canada bond now yields less than inflation – the Consumer Price Index rose 1.5 per cent in February – which means bond investors are earning a negative real return, said James Hymas of Hymas Investment Management. “And that’s before taxes,” he said.

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