Given that outlook, Reithinger sees some opportunity in Canadian fixed income that the market has not priced in yet. He believes the greatest current opportunity in Canada is in provincial bonds, which he says offer better value on a risk-adjusted basis than corporate bonds. He also thinks that any fixed income allocation should incorporate a global perspective and that US mortgage backed securities look attractive after their exposure to last year’s turmoil at Silicon Valley Bank was dealth with.
Forrest believes asset managers need to be selective on the Canadian market. Broadly speaking she notes that Canadian equities have been strong on absolute terms, but in the past year they have lagged other developed markets. Some of that, she says, is a product of slowing domestic economic momentum, but some of that is a story of global growth given 50 per cent of revenues for TSX listed companies…
