• Home
  • Insights
  • Canadian Equities Supported by Low Volatility and Bank of Canada Pause

Canadian Equities Supported by Low Volatility and Bank of Canada Pause

May 31, 2023   |   
Author: Bilal Hafeez

Canadian equities have performed well so far in 2023. The S&P/TSX 60 Index Futures traded on the Montréal Exchange has risen over 6% this year. Notably, this rally has occurred alongside falling volatility. The three-month (realised) volatility of the S&P/TSX 60 Index Futures has fallen from 17% at the start of the year to 11% at the start of May. This is the lowest since 2021 and lower than the current volatility in the US S&P 500(R) Index.

READ ARTICLE

Related Articles

  • CORRA in 2024: A Year for Forests (Not Trees)
    February 13, 2024
    Fixed income managers often come in two broad types; those who focus on the macroeconomic perspective, or big picture, and those who focus on the minutia of relative value trading. Fortunately, different economic situations usually afford both types of manager ample opportunities although there are clearly “good times” for macro traders and “good times” to be a relative value trader. We suggest that 2024, due to the probable turn in monetary policy and the volatility associated with the end, or anticipated end, of a monetary policy cycle, will be a year where getting the big picture right is far more important than getting the details right.
    Trading Mechanics: Price versus Yield Spread
    March 19, 2024
    In this edition, we take a look at Canadian Bond Futures Inter-Commodity Spreads following their recent inclusion on Bloomberg. The article provides an overview of quoting conventions to help investors better understand quoting standards for curve spread trading and support the efficient execution of these more popular spreading strategies.
  • Saying Goodbye to BAX: A Strategic Shift in Hedging Canadian Interest Rates
    April 26, 2024
    Benchmark interest rates are crucial in directing investment strategies, shaping economic policies, and impacting lending rates in the global finance landscape. In Canada, the shift from the Canadian Dollar Offered Rate (CDOR), the recognized financial benchmark for Bankers’ Acceptances (BAs), to the Canadian Overnight Repo Rate Average (CORRA) as a reference benchmark rate marks a significant transformation in the financial decision-making process.

TMX Group Limited and its affiliates do not endorse or recommend any securities issued by any companies identified on, or linked through, this site. Please seek professional advice to evaluate specific securities or other content on this site. All content (including any links to third party sites) is provided for informational purposes only (and not for trading purposes), and is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The views, opinions and advice of any third party reflect those of the individual authors and are not endorsed by TMX Group Limited or its affiliates. TMX Group Limited and its affiliates have not prepared, reviewed or updated the content of third parties on this site or the content of any third party sites, and assume no responsibility for such information.

Copyright © 2024 Bourse de Montréal Inc. All rights reserved.
Canadian Derivatives Exchange is an official mark of Bourse de Montréal Inc.