Take the enclosed CIBC data set (November 19th) and answer the following questions, 1. Roughly plot some simple yield curves for the fixed income bonds of the Government of Canada and US discussing what you find and rationalizing the differences between the two data sets given the integration of their economies and discuss the implications of the data for the corporate sector 2. Discuss why with reported inflation of 0.5% for Canada and 1.4% for the USA, the corporate sector and other investors would consider buying government bonds CIBC ASSET MANAGEMENT 23-Oct-20 Canadian Markets GRE WOOCARRETER EE.UCICA MON CHU 4.6% 18274 43 0 24% S&P/TEX 1 4 7 a - 146 -130 -105 -52 DU Canada - 2 Year Canada - 5 Yeer Canade - 10 Year Canada - 30 Year WINLAND Care UNRECTOR CU Shirt TOTALE TURNI FTSE Canada Universe FTSE Canada Short Term FTSE Canada Mid Term FTSE Canada Long Term 7600 1,9166 2,1080 WITOURS -0.6% 0.0% -0.4% -1.4% 7.4% 4.9% 9.1% 9.3% Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Real Estate Telecommunication Services Utilities 1,326 10 8,053 60 3,880 84 2,235 61 5,819 17 296 47 2.483 17 81290 2,847 38 1,432 44 2,881 86 -0.5% -1.2% -3.4% 0.6% -2.2% 3.3% 0.5% -4.6% 0.6% 1.3% -1.3% -38.4% 23.9% 8.8% 1.6% 4.9% 34.1% -14.1% 64.4% -18.9% -8.3% 7.8% -0.4% 6.4% 1,867 3 FTSE Canada Corporate Universe 0.3% 1.3% BofA-ML US High Yield Cash Pay (USD) CREDIT SPREANS CALERA MYM VOCH 102 31 1.3% -5.3% CIBC 136 80 139 106 35 16 25 38 2.8% FTSE Canads Bond Universe FTSE Canada Short Term Universe FTSE Canada Mid Term Universe FTSE Canada Long Term Universe 0.9% 46295 BMO Small Cap Index -1 2 486 -13 128 BofA-ML US High Yield Cash Pay One MOYO Mche thes! SUZY MAN 242 1,250 9/15/2021 2/24/2081 AAA BBB Ford Auto Securitization Trust, A-1 Royal Bank of Canada (LRCN) 0.49% 2 45% 25% 3-Month CDOR Prime Rate BoC Ovemight Rate -1 0 0 -159 -150 - 150 muthalle INTERESIRATES Lawnche 0 50% 479% Bank Rate 5-year Res. Mtg -150 -40 i U.S. Markets Car JUDUL MTOCK MOPOTTER TERCON WALENTES CHOISTE Cum 0 15% 0 87% 0 86 1 5 10 14 -142 -132 -107 -72 US-2 Year US - 5 Year US - 10 Year US - 30 Year 3,458 84 28,842 44 11,467 29 S&P 500 Dow Jones Nasdaq Composite -0.7% -0.9% -1.8% 7.1% -0.7% 27.8% International Markets Canart WILY ONE DO IWANTVICS CURACER Cult VID.COM ITOCH NARUTO -0.3% 0.3% 6,862 15 23,610.59 1,874 07 1 136 54 119 32 -1.0% 0.5% 0.2% 1.4% -0.8% FTSE Nikkel MSCI EAFE MSCI Emerging Markets MSCI Europe -22.3% -0.8% -0.0% 2.0% -14.5% US$ / CDNS CDN$ / US$ EURO / US$ US$ /* 1.2% -1.2% 5.5% 3.4% 131 076 18 104 87 0.9% -0.5% CON MODITES RETURNS uten CPIYOY) 05% Canada US UK Germany Japan Gold US$ OU US$ CRB US$ WCS AECO 0.1% 1.3% 0.2% 0.0% 0.2% 1,B07 50 40 BO 161 28 30 89 319 -0.2% -1.5% -0.1% 4.1% 21.8% 24.6% -28.2% -18.8% 21.2% 51.9% 0.5% 0.2% 0.0% Economic Releases Butres Alust Ata URTEOTATES Camp 85 1415 0.1% 3% 87% 4% 596 Wholesale Trade Sales MOM - Aug Teranet/National Bank HPI YOY. Sep Retail Sales MOM - Aug Retail Sales Ex Auto MoM - Aug CPI NSA MOM - Sep CPI YOY - Sep 1553K 1.1% 0.9% -0.1% 0.5% 5.2% 5.7% 1.0% -0.1% 0.1% 0.1% NAHB Housing Market Index - Oct Housing Starts - Sep Building Permits - Sep Initial Jobless Claims - Oct 17 Continuing Claims - Oct 10 Leading Index - Sep Existing Home Sales - Sep 83 1465k 1520k 870k 9625k 0.6% 6.30m 83 1388k 1478k 842K 9397k 1.4% 5.98m 787k 8373 07% 6 54 15 05% Take the enclosed CIBC data set (November 19th) and answer the following questions, 1. Roughly plot some simple yield curves for the fixed income bonds of the Government of Canada and US discussing what you find and rationalizing the differences between the two data sets given the integration of their economies and discuss the implications of the data for the corporate sector 2. Discuss why with reported inflation of 0.5% for Canada and 1.4% for the USA, the corporate sector and other investors would consider buying government bonds CIBC ASSET MANAGEMENT 23-Oct-20 Canadian Markets GRE WOOCARRETER EE.UCICA MON CHU 4.6% 18274 43 0 24% S&P/TEX 1 4 7 a - 146 -130 -105 -52 DU Canada - 2 Year Canada - 5 Yeer Canade - 10 Year Canada - 30 Year WINLAND Care UNRECTOR CU Shirt TOTALE TURNI FTSE Canada Universe FTSE Canada Short Term FTSE Canada Mid Term FTSE Canada Long Term 7600 1,9166 2,1080 WITOURS -0.6% 0.0% -0.4% -1.4% 7.4% 4.9% 9.1% 9.3% Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Real Estate Telecommunication Services Utilities 1,326 10 8,053 60 3,880 84 2,235 61 5,819 17 296 47 2.483 17 81290 2,847 38 1,432 44 2,881 86 -0.5% -1.2% -3.4% 0.6% -2.2% 3.3% 0.5% -4.6% 0.6% 1.3% -1.3% -38.4% 23.9% 8.8% 1.6% 4.9% 34.1% -14.1% 64.4% -18.9% -8.3% 7.8% -0.4% 6.4% 1,867 3 FTSE Canada Corporate Universe 0.3% 1.3% BofA-ML US High Yield Cash Pay (USD) CREDIT SPREANS CALERA MYM VOCH 102 31 1.3% -5.3% CIBC 136 80 139 106 35 16 25 38 2.8% FTSE Canads Bond Universe FTSE Canada Short Term Universe FTSE Canada Mid Term Universe FTSE Canada Long Term Universe 0.9% 46295 BMO Small Cap Index -1 2 486 -13 128 BofA-ML US High Yield Cash Pay One MOYO Mche thes! SUZY MAN 242 1,250 9/15/2021 2/24/2081 AAA BBB Ford Auto Securitization Trust, A-1 Royal Bank of Canada (LRCN) 0.49% 2 45% 25% 3-Month CDOR Prime Rate BoC Ovemight Rate -1 0 0 -159 -150 - 150 muthalle INTERESIRATES Lawnche 0 50% 479% Bank Rate 5-year Res. Mtg -150 -40 i U.S. Markets Car JUDUL MTOCK MOPOTTER TERCON WALENTES CHOISTE Cum 0 15% 0 87% 0 86 1 5 10 14 -142 -132 -107 -72 US-2 Year US - 5 Year US - 10 Year US - 30 Year 3,458 84 28,842 44 11,467 29 S&P 500 Dow Jones Nasdaq Composite -0.7% -0.9% -1.8% 7.1% -0.7% 27.8% International Markets Canart WILY ONE DO IWANTVICS CURACER Cult VID.COM ITOCH NARUTO -0.3% 0.3% 6,862 15 23,610.59 1,874 07 1 136 54 119 32 -1.0% 0.5% 0.2% 1.4% -0.8% FTSE Nikkel MSCI EAFE MSCI Emerging Markets MSCI Europe -22.3% -0.8% -0.0% 2.0% -14.5% US$ / CDNS CDN$ / US$ EURO / US$ US$ /* 1.2% -1.2% 5.5% 3.4% 131 076 18 104 87 0.9% -0.5% CON MODITES RETURNS uten CPIYOY) 05% Canada US UK Germany Japan Gold US$ OU US$ CRB US$ WCS AECO 0.1% 1.3% 0.2% 0.0% 0.2% 1,B07 50 40 BO 161 28 30 89 319 -0.2% -1.5% -0.1% 4.1% 21.8% 24.6% -28.2% -18.8% 21.2% 51.9% 0.5% 0.2% 0.0% Economic Releases Butres Alust Ata URTEOTATES Camp 85 1415 0.1% 3% 87% 4% 596 Wholesale Trade Sales MOM - Aug Teranet/National Bank HPI YOY. Sep Retail Sales MOM - Aug Retail Sales Ex Auto MoM - Aug CPI NSA MOM - Sep CPI YOY - Sep 1553K 1.1% 0.9% -0.1% 0.5% 5.2% 5.7% 1.0% -0.1% 0.1% 0.1% NAHB Housing Market Index - Oct Housing Starts - Sep Building Permits - Sep Initial Jobless Claims - Oct 17 Continuing Claims - Oct 10 Leading Index - Sep Existing Home Sales - Sep 83 1465k 1520k 870k 9625k 0.6% 6.30m 83 1388k 1478k 842K 9397k 1.4% 5.98m 787k 8373 07% 6 54 15 05%