Not exact matches
In case of a serious default, one in which the U.S. postpones or suspends any
debt payments, «Canadian
yields could actually
drop as a result of both the economic slowdown and safe - haven flows,» Shenfeld wrote in a recent research note.
Pay will probably
drop 20 percent for traders of high -
yield debt, crude oil and loans, according to Options Group.
In recent months, the
yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the
yield on government
debt,
dropping within striking distance of the lows seen post the 2008 financial crisis.
A decision not to raise the
debt ceiling south of the border could see interest rates there rise while Canadian
yields could
drop, Erica Alini cited CIBC economist Avery Shenfeld as saying.
The
debt section of the portfolio mainly consists of investments in good - quality bonds with higher duration that can facilitate better
yields from interest rate
drops.