TXPR closed at 618.14, down 1.14% on the day. Volume today was 1.47-million, well below the median of the past 21 trading days.
CPD closed at 12.28, down 0.97% on the day. Volume was 107,800, near the median of the past 21 trading days.
ZPR closed at 10.26 down 0.87% on the day. Volume of 173,220 was near the median of the past 21 trading days.
Five-year Canada yields were down a bit to 2.82% today.
It was a pretty horrible day everywhere:
The S&P 500 fell 3.2 percent, adding to a downdraft that has knocked 16.3 percent off the index this year, including a five-week stretch of selling that is the market’s longest such decline in more than a decade.
The drop has stocks approaching a bear market, Wall Street’s term for a decline of 20 percent or more from recent highs, a retreat that serves as a marker of a severe shift in sentiment.
The focus of attention on Monday was China’s economy, after customs data showed that growth in the country’s exports slowed significantly in April and Li Keqiang, the Chinese premier, warned this weekend that the current state of the nation’s jobs market was “complicated and grave.”
But here’s a sign of the times:
Royal Bank of Canada RY-T -1.44%decrease
is raising base pay by 3 per cent for its lower-paid employees as part of a $200-million spending package that aims to fend off fierce competition for talent by improving salaries and benefits.The unusual increase takes effect on July 1, and applies to all employees in a range of entry-level and less senior positions, including at branches, call centres and other divisions. Collectively, the employees receiving raises make up nearly half of all RBC staff, and chief executive officer Dave McKay said in a company memo that the raises are intended “to address the market pressures and the rising cost of living that is having a greater impact on colleagues in lower salary bands.”
He said RBC, which has more than 85,000 full-time equivalent employees, will take those market forces into account when the bank calculates its normal salary increases at the end of the fiscal year in October. Many other RBC employees, including those in senior roles, receive a significant amount of their pay from commissions or bonuses, which also surged in a busy year for traders and investment bankers. That has been a key factor driving costs higher for many banks over the past year.
The New York Fed has released its Survey of Consumer Expectations:
- Median inflation expectations decreased in April at the one-year horizon to 6.3% from 6.6% in March. In contrast, median three-year-ahead inflation expectations rose by 0.2 percentage point to 3.9%. While both series remain elevated, they are 0.3 percentage point below their series highs. The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at the one-year horizon but increased at the three-year horizon.
- …
- Expectations about year-ahead price changes fell sharply by 4.4 percentage points for the price of gas to 5.2%. The expected change in the price of food and medical care fell by 0.2 percentage point (to 9.4%) and by 0.1 percentage point (to 9.5%), respectively. The median expected change in the cost of a college education and rent rose by 0.6 percentage point (to 9.1%) and 0.1 percentage point (to 10.3%), respectively. The median expected increase in rent is now at a new series’ high.
- …
- Median one-year-ahead expected earnings growth remained unchanged in April at its series high of 3.0%.
- …
- The median expected growth in household income increased by 0.1 percentage point to 3.1% in April. This reading is comparable to its 12-month trailing average of 3.0%, but it is below the series high of 3.4% recorded in December 2021.
- Median household nominal spending growth expectations increased by 0.3 percentage point to 8.0%, marking a new series high. The increase was most pronounced for respondents over the age of 60 and those with at most a high school diploma.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 3.79 % | 4.45 % | 23,184 | 18.48 | 1 | 0.0000 % | 2,571.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1773 % | 4,858.2 |
| Floater | 4.25 % | 4.29 % | 50,931 | 16.79 | 3 | 0.1773 % | 2,799.8 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0306 % | 3,505.9 |
| SplitShare | 4.85 % | 5.47 % | 37,300 | 3.28 | 8 | -0.0306 % | 4,186.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0306 % | 3,266.7 |
| Perpetual-Premium | 5.94 % | 5.98 % | 62,090 | 13.92 | 1 | 0.0403 % | 2,938.1 |
| Perpetual-Discount | 5.89 % | 5.91 % | 66,104 | 14.02 | 35 | -1.8971 % | 3,150.7 |
| FixedReset Disc | 4.72 % | 6.17 % | 139,720 | 13.72 | 59 | -2.8267 % | 2,458.0 |
| Insurance Straight | 5.77 % | 5.86 % | 102,311 | 14.04 | 20 | -0.7798 % | 3,110.9 |
| FloatingReset | 4.80 % | 5.06 % | 66,683 | 15.37 | 2 | -1.1754 % | 2,593.2 |
| FixedReset Prem | 5.09 % | 5.40 % | 138,165 | 2.09 | 9 | -0.1246 % | 2,588.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -2.8267 % | 2,512.6 |
| FixedReset Ins Non | 4.58 % | 6.06 % | 85,212 | 13.86 | 15 | 0.0697 % | 2,619.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CIU.PR.A | Perpetual-Discount | -48.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 10.15 Evaluated at bid price : 10.15 Bid-YTW : 11.40 % |
| TRP.PR.G | FixedReset Disc | -40.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 12.29 Evaluated at bid price : 12.29 Bid-YTW : 10.34 % |
| BAM.PR.Z | FixedReset Disc | -11.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.57 Evaluated at bid price : 20.57 Bid-YTW : 7.14 % |
| NA.PR.W | FixedReset Disc | -10.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 6.47 % |
| NA.PR.S | FixedReset Disc | -6.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 6.27 % |
| BMO.PR.Y | FixedReset Disc | -6.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.35 % |
| NA.PR.G | FixedReset Disc | -5.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.21 Evaluated at bid price : 22.57 Bid-YTW : 6.19 % |
| BMO.PR.W | FixedReset Disc | -4.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.05 Evaluated at bid price : 20.05 Bid-YTW : 6.12 % |
| NA.PR.E | FixedReset Disc | -4.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.88 Evaluated at bid price : 22.40 Bid-YTW : 6.03 % |
| BIP.PR.A | FixedReset Disc | -4.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.74 Evaluated at bid price : 22.00 Bid-YTW : 6.81 % |
| TRP.PR.E | FixedReset Disc | -4.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 17.96 Evaluated at bid price : 17.96 Bid-YTW : 6.99 % |
| TD.PF.B | FixedReset Disc | -4.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.07 Evaluated at bid price : 20.07 Bid-YTW : 6.17 % |
| POW.PR.D | Perpetual-Discount | -4.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.09 Evaluated at bid price : 21.09 Bid-YTW : 6.00 % |
| TRP.PR.D | FixedReset Disc | -4.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 18.23 Evaluated at bid price : 18.23 Bid-YTW : 7.02 % |
| RY.PR.S | FixedReset Disc | -3.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.73 Evaluated at bid price : 23.10 Bid-YTW : 5.62 % |
| TRP.PR.A | FixedReset Disc | -3.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 16.18 Evaluated at bid price : 16.18 Bid-YTW : 7.14 % |
| CM.PR.P | FixedReset Disc | -3.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.95 Evaluated at bid price : 19.95 Bid-YTW : 6.18 % |
| CM.PR.O | FixedReset Disc | -3.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 6.25 % |
| BNS.PR.I | FixedReset Disc | -3.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.69 Evaluated at bid price : 23.07 Bid-YTW : 5.72 % |
| TD.PF.C | FixedReset Disc | -2.95 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.04 % |
| RY.PR.H | FixedReset Disc | -2.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 6.02 % |
| CU.PR.C | FixedReset Disc | -2.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.30 Evaluated at bid price : 21.30 Bid-YTW : 6.19 % |
| SLF.PR.D | Insurance Straight | -2.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 5.77 % |
| TD.PF.E | FixedReset Disc | -2.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 6.13 % |
| BAM.PF.E | FixedReset Disc | -2.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 18.52 Evaluated at bid price : 18.52 Bid-YTW : 6.93 % |
| IAF.PR.B | Insurance Straight | -2.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.36 Evaluated at bid price : 21.36 Bid-YTW : 5.46 % |
| TD.PF.J | FixedReset Disc | -2.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.88 Evaluated at bid price : 23.44 Bid-YTW : 5.91 % |
| CM.PR.S | FixedReset Disc | -1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.13 Evaluated at bid price : 22.80 Bid-YTW : 5.79 % |
| PWF.PR.R | Perpetual-Discount | -1.80 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 23.17 Evaluated at bid price : 23.43 Bid-YTW : 5.91 % |
| CM.PR.Q | FixedReset Disc | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.22 Evaluated at bid price : 21.22 Bid-YTW : 6.09 % |
| GWO.PR.S | Insurance Straight | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.97 Evaluated at bid price : 22.35 Bid-YTW : 5.94 % |
| TD.PF.D | FixedReset Disc | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.28 Evaluated at bid price : 21.28 Bid-YTW : 6.08 % |
| BAM.PR.M | Perpetual-Discount | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.65 Evaluated at bid price : 19.65 Bid-YTW : 6.14 % |
| MFC.PR.M | FixedReset Ins Non | -1.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.86 Evaluated at bid price : 19.86 Bid-YTW : 6.38 % |
| BMO.PR.T | FixedReset Disc | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.63 Evaluated at bid price : 20.63 Bid-YTW : 5.96 % |
| CU.PR.E | Perpetual-Discount | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 5.91 % |
| SLF.PR.J | FloatingReset | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 15.35 Evaluated at bid price : 15.35 Bid-YTW : 4.62 % |
| BAM.PR.N | Perpetual-Discount | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 6.17 % |
| BMO.PR.E | FixedReset Disc | -1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.79 Evaluated at bid price : 23.20 Bid-YTW : 5.91 % |
| PVS.PR.J | SplitShare | -1.47 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2028-02-29 Maturity Price : 25.00 Evaluated at bid price : 23.45 Bid-YTW : 5.86 % |
| CU.PR.J | Perpetual-Discount | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 5.88 % |
| TRP.PR.C | FixedReset Disc | -1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 13.55 Evaluated at bid price : 13.55 Bid-YTW : 7.08 % |
| GWO.PR.G | Insurance Straight | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.75 Evaluated at bid price : 22.00 Bid-YTW : 5.98 % |
| PWF.PR.P | FixedReset Disc | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 14.50 Evaluated at bid price : 14.50 Bid-YTW : 6.68 % |
| PVS.PR.I | SplitShare | -1.41 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-10-31 Maturity Price : 25.00 Evaluated at bid price : 24.40 Bid-YTW : 5.81 % |
| BAM.PR.R | FixedReset Disc | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 6.74 % |
| BAM.PF.F | FixedReset Disc | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.62 Evaluated at bid price : 20.62 Bid-YTW : 6.71 % |
| RY.PR.J | FixedReset Disc | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 6.09 % |
| BAM.PF.G | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.65 Evaluated at bid price : 19.65 Bid-YTW : 6.71 % |
| SLF.PR.E | Insurance Straight | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.71 % |
| BAM.PF.B | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 6.64 % |
| TD.PF.K | FixedReset Disc | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 22.59 Evaluated at bid price : 23.00 Bid-YTW : 5.88 % |
| GWO.PR.T | Insurance Straight | -1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.56 Evaluated at bid price : 21.84 Bid-YTW : 5.97 % |
| RY.PR.Z | FixedReset Disc | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.72 Evaluated at bid price : 20.72 Bid-YTW : 5.94 % |
| BIP.PR.E | FixedReset Disc | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 23.42 Evaluated at bid price : 24.00 Bid-YTW : 6.12 % |
| BMO.PR.S | FixedReset Disc | -1.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.27 Evaluated at bid price : 21.27 Bid-YTW : 5.94 % |
| GWO.PR.Q | Insurance Straight | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.56 Evaluated at bid price : 21.82 Bid-YTW : 5.97 % |
| PWF.PR.K | Perpetual-Discount | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.95 % |
| BAM.PR.B | Floater | 1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 13.17 Evaluated at bid price : 13.17 Bid-YTW : 4.29 % |
| RY.PR.O | Perpetual-Discount | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 23.25 Evaluated at bid price : 23.70 Bid-YTW : 5.16 % |
| PVS.PR.G | SplitShare | 2.02 % | YTW SCENARIO Maturity Type : Option Certainty Maturity Date : 2026-02-28 Maturity Price : 25.00 Evaluated at bid price : 24.75 Bid-YTW : 5.47 % |
| BAM.PR.X | FixedReset Disc | 2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 17.77 Evaluated at bid price : 17.77 Bid-YTW : 6.66 % |
| PVS.PR.K | SplitShare | 2.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 24.00 Bid-YTW : 5.25 % |
| MFC.PR.N | FixedReset Ins Non | 5.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 19.73 Evaluated at bid price : 19.73 Bid-YTW : 6.30 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BIP.PR.E | FixedReset Disc | 28,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 23.42 Evaluated at bid price : 24.00 Bid-YTW : 6.12 % |
| CM.PR.O | FixedReset Disc | 28,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.01 Evaluated at bid price : 20.01 Bid-YTW : 6.25 % |
| RS.PR.A | SplitShare | 26,600 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-12-31 Maturity Price : 10.00 Evaluated at bid price : 9.91 Bid-YTW : 5.67 % |
| CU.PR.J | Perpetual-Discount | 21,005 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 5.88 % |
| BIP.PR.F | FixedReset Prem | 20,570 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 23.61 Evaluated at bid price : 24.80 Bid-YTW : 5.78 % |
| MIC.PR.A | Perpetual-Discount | 20,307 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-05-09 Maturity Price : 21.87 Evaluated at bid price : 22.20 Bid-YTW : 6.16 % |
| There were 16 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| CIU.PR.A | Perpetual-Discount | Quote: 10.15 – 19.75 Spot Rate : 9.6000 Average : 5.2094 YTW SCENARIO |
| TRP.PR.G | FixedReset Disc | Quote: 12.29 – 20.28 Spot Rate : 7.9900 Average : 4.4789 YTW SCENARIO |
| IFC.PR.C | FixedReset Disc | Quote: 20.50 – 24.70 Spot Rate : 4.2000 Average : 2.5953 YTW SCENARIO |
| MFC.PR.F | FixedReset Ins Non | Quote: 14.73 – 17.65 Spot Rate : 2.9200 Average : 1.8395 YTW SCENARIO |
| BAM.PR.Z | FixedReset Disc | Quote: 20.57 – 23.29 Spot Rate : 2.7200 Average : 1.6752 YTW SCENARIO |
| NA.PR.G | FixedReset Disc | Quote: 22.57 – 24.69 Spot Rate : 2.1200 Average : 1.2566 YTW SCENARIO |
I guess the sad thing about the market “correction” that has us on the verge of an official bear market is the fact that loan rates in the 4 to 5% range are really quite “normal” in any economic environment. Businesses, and consumers, have become so used to the near zero cost of borrowing that this has become a crutch that everyone seems to rely on. Hence, the thought of that easy money bonus evaporating has the “chicken littles” in total panic mode. At the end of the day, I’m pretty sure that a few percentage points aren’t going to make the difference between a bona fide corporation surviving, or even having their earnings affected in any material way. But central banks around the world, especially our own, have gone to exponential measures to convince everyone that zero interest is dangerous, and inflation must be reigned in, and fast before more damage is done. Sadly, they don’t seem to understand that rapidly hiking borrowing rates will only prompt companies to raise their prices to offset the additional costs. This is actually where the hike strategy will start to backfire imo, and probably just add to inflationary pressures. The other reality is that demand hasn’t really increased (maybe in real estate, I suppose), but the main inflation issue is the direct result of “supply chain” issues in the aftermath of the Covid era. Fuel and food demand is static; the world’s ability to supply the product, on the other hand is damaged . . . this is why prices are so high. For those reasons, it is very very possible that the central banks of the world, . . . have it a little wrong. Time will tell, but Jerome & Tiff look to be creating a legacy for themselves that they probably won’t be too proud of.