Bank of Canada Hawkishness Has CI Investments Favoring U.S.
- Rate hikes may be policy mistakes but won’t fight the bank
- Boosting U.S. duration and Canadian curve steepeners
Vehicles drive past the Bank of Canada offices in Ottawa, Ontario, Canada, on Monday, March 20, 2017. Trudeau's finance chief, Bill Morneau, will release his second federal budget Wednesday and all signs point to more red ink: annual deficits are presently projected in the C$30 billion (C$22 billion) range -- the highest since the aftermath of the 2008 downturn -- with no forecast return to balance.
Photographer: Chris Roussakis/BloombergThis article is for subscribers only.
Don’t fight the central bank, the saying goes. Kamyar Hazaveh, who leads a team overseeing C$11 billion ($8.8 billion) in fixed income at CI Investments Inc., is taking it to heart.
Despite believing the Bank of Canada was wrong to raise interest rates last month, Hazaveh’s team is favoring U.S. Treasuries over their northern counterparts.