RE:RE:RE:RE:Why not spin off the renewables to realize value?Interest Rates may stay higher for longer.
Excerpts from an article on BNN's website: Yields among both the U.S. and Canadian bond markets hit 16-year highs earlier this week. The trend comes after fresh signals from central banks in both countries suggesting elevated interest rates will last for some time yet. The Bank of Canada has hinted that elevated rates may be here for a while, emphasizing the “ongoing concern” in inflation data to thwart expectations of cuts in the near future. Meanwhile, the U.S. Federal Reserve has indicated another hike could be on the way this year, with just two expected cuts in 2024......
....“For the last couple years, it’s really been a challenging space and now we’re seeing these yield numbers like five per cent, which really can get investors’ attention,” he said. “It’s been the year of fixed-income, people are looking at these numbers and saying ‘this is investable again.’” Bordeleau-Labrecque agreed that the current bond market is advantageous. “Because interest rates are so much higher now, the price has gone down a lot, so you can buy these short-term bonds with really low prices and what that means is yes, you’re earning an all-in yield that’s pretty attractive, but also it’s going to be more tax-effective,” he said.