The first quarter of 2014 saw Canadian bond returns climb back into positive territory. This was a relief to Canada’s fixed income investors as 2013 saw the first bond losses since 1999. This is not something they are used to since the DEX Universe has only had losses in 3 out of the last 34 years. It paid to assume credit and duration risk. Canada bonds were safe but sorry with a return of 2.1%. Longer duration provincial bonds were up 3.4% as their longer term benefited from a decline in yields. Corporate bonds had a healthy 3.0% return as spread narrowing added to their higher yield.
Read the full newsletter at the link below.Canso April 2014 Corporate Bond Newsletter