Canadian Banks Now Paying 10% For Capital

Bank of Montreal announced through one of their wholly owned subsidiaries, BMO Capital Trust II, that  they will be raising $450 million of capital at a rate of 10.22%. 
For all intensive purposes, this is 10 year money. While the bank can extend the maturity date, it will be somewhat onerous to do so as they [...]

How to Profit if the Bond Bubble Bursts

With 90 day US Treasury Bills providing negative rates and 30 year rates hovering close to 3%, we have to wonder how much lower rates can go.
I thought that rates couldn’t go below zero but you realize that if you live long enough, you may just see everything as was witnessed with shorter term rates [...]

Gold Spot Price Higher Than Futures Prices For First Time Ever

For the first time ever yesterday. the spot price of gold traded higher than the futures price where investors or speculators accept the delivery of gold at a pre-determined later date at a pre-determined price.
Typically, the futures price equals the spot price plus the return you would receive if you took your funds and invested [...]

Canadian Markets Set to Underperform on Political Uncertainty

December 2nd was an interesting trading day as markets around the world rebounded from one of the worst trading session on record. Markets around the world except for Canada. Our markets dropped along with our dollar.
Any economic stimulus package that the three party coalition may put forward could be completely offset by foreigners dumping Canadian [...]

Ted Rogers….A Visionary That Can’t Be Replaced

The passing of Ted Rogers, founder of Rogers Communications, is a blow not only to the corporation but to Canada as he was a corporate icon that cannot be replicated.
He took on immeasurable risk to build a media giant that would surpass BCE and Telus. He did a great job buying media properties or building [...]