Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

ODDS FAVOR A 50BP DEC CUT

[garyreins]

"Traders in money markets are now putting significantly higher odds on the Bank of Canada delivering another large 50 basis point rate cut in December following a volatile week that has seen Donald Trump win a second term in office, another Federal Reserve interest rate cut, and weaker-than-expected Canadian job creation. Many economists concur that a large rate cut seems to be the offing next month.

 

Canada added 14,500 jobs in October and wages of permanent employees rose, as the economy grappled to absorb the slack built up due to a rapidly rising population amid an overheated market. The unemployment rate stayed unchanged from September but hovered around a 34-month high of 6.5%, Statistics Canada said. Analysts had estimated a net addition of 25,000 jobs and the unemployment rate to edge up to 6.6%.

 

Implied probabilities in overnight index swaps markets Friday put the odds of a 50 basis point rate cut on Dec. 11 at about 60%, and about 40% for a 25 basis point cut."

TRANSLATION:  GARY REINS GETS TO BUY MORE REITS WITH 5.5%-8.5% DIVIDENDS ON  A 4.30% BORROWING RATE.