Bonding Canadian capital markets and the economy

Key takeaways: 

• The FTSE Canada bond indices have been designed to capture key debt market developments since the 1910s and help investors monitor the performance, and main characteristics of Canadian debt, across asset classes. Access to global capital markets, formation of a full yield curve, and deep secondary markets in government and provincial debt, have all been key developments in this process
• The long history of the FTSE Canada Bond indices allows investors to benchmark investment performance in fixed income over different eras and regimes, from the high inflation of the 1970s to the lowflation after the GFC. The indices embody much of Canada’s monetary and economic history since Confederation in 1867, and provide important insight into the evolution of the capital markets and economy
• The FTSE Canada bond indices remain as relevant now as ever, enabling investors to monitor and re-calibrate their investment strategies. Indeed, recent innovation in fixed income investing, particularly the rapid growth in bond ETFs, has moved the indices centre stage in the Canadian fixed income investment universe

Points of differentiation: 

• The paper shows how FTSE Canada bond indices reflect key debt market developments, and help investors monitor the performance, and main characteristics of Canadian debt, across asset classes
• Their long history is unique and allows investors to benchmark performance in fixed income over different eras and regimes, from the high inflation of the 1970s to the lowflation after the GFC
• The indices embody much of Canada’s monetary and economic history since Confederation in 1867, and provide important insight into the evolution of the capital markets and economy
• The indices remain as relevant now as ever, enabling investors to monitor and re-calibrate their investment strategies. Recent innovation in fixed income investing, particularly the rapid growth in bond ETFs, has moved the indices centre stage in the Canadian fixed income investment universe

What does our research mean for investors?

The long history of the FTSE Canada bond indices gives investors key insight into market performance during different inflation, and economic policy regimes. The indices remain as relevant now as ever, enabling investors to monitor and re-calibrate investment strategies. Recent innovation in fixed income investing, particularly the rapid growth in bond ETFs, has moved the indices centre stage in the Canadian fixed income investment universe.