Invesco Canada blog

Insights, commentary and investing expertise

Interest-rate outlook: Fed hikes on the horizon?


Senior Portfolio Manager, Head of North America Rates, Invesco Fixed Income†
March 3, 2017

Subject | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

Yields on Canadian government bonds have hovered in a range this year as the global yield sell-off has paused. The yield curve remains in a steepening trend as the Bank of Canada has attempted to keep the possibility of a rate cut on the table, although a recent string of positive employment surprises has made that possibility less likely. Canadian government bond yields are likely to remain range-bound in the near term until more certainty emerges around global economic prospects.

Continued

Leave a comment

Q&A: What is factor investing?


Vice President, Product & Business Strategy, PowerShares Canada
February 28, 2017

Subject | ETFs | PowerShares | Smart beta

Factor investing has attracted a lot of attention from investors and media recently, but its roots can be traced back to the 1960s. As innovators in the factor-investing space, we believe in pushing the boundaries of portfolio construction with factor-based methodologies that go beyond traditional indices, allowing investors to target specific risk/return objectives with more precise portfolio-building tools.

Continued

Leave a comment

Promises to policy: What’s in store for U.S. stocks?


Portfolio Manager, Invesco Ltd.
February 23, 2017

Subject | Active management | Institutional | Invesco

As of today, we have more questions than answers about what to expect from the new Donald Trump administration. Certainly, it appears the U.S. president has a pro-business and anti-regulation outlook, but how exactly will this translate into policy, and how will corporations and trading partners react? That remains to be seen.

Continued

Leave a comment

What does Trump’s rhetoric mean for Asian markets?


Senior Portfolio Manager, Invesco Ltd.
February 17, 2017

Subject | Active management | Institutional | Invesco | Macro views

Absent the major reform investors have been hoping for, Japan’s economy remains largely stagnant, with the yen weakening against the U.S. dollar over the last quarter of 2016. By contrast, China, along with the rest of Asia, seems poised for another year of relatively stable growth. The policies of U.S. President Donald Trump, however, could potentially spur volatility in both economies. Let’s take a closer look.

Continued

Leave a comment

Currency outlook: USD volatility and euro weakness


Senior Portfolio Manager, Head of Macro Research and Global Multi-Sector Portfolio Management, Invesco Fixed Income
February 15, 2017

Subject | Active management | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

The Canadian dollar has bounced around since the U.S. presidential election as economic growth has shown positive signs but inflation continues to disappoint the Bank of Canada (BoC). It sold off initially after the Fed raised rates in December, but rallied back strongly after year end. The BoC stated at its January meeting that rate cuts are still a possibility, but it will likely wait until more clarity is available on U.S. fiscal and trade policy before taking action. The Canadian dollar remains overvalued, in our view, but will likely trade within a range in the near term.

Continued

Leave a comment

Interest-rate outlook: The aftermath of Trump’s win


Senior Portfolio Manager, Head of North America Rates, Invesco Fixed Income†
February 14, 2017

Subject | Active management | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

Canadian government yields have remained under the same upward pressure felt globally in the aftermath of the U.S. presidential election which boosted expectations of higher growth and inflation fueled by U.S. fiscal stimulus and tax cuts. The Bank of Canada meeting in January recognized that Canada’s economy has shown some improvement, but emphasized there was more work needed to reduce excess capacity as inflation remains very low.

Continued

Leave a comment