Analyzing Monetary Policy and Funding Stability

In this episode of Curve Your Enthusiasm, Ian is joined by Brendan Donaher, Executive Director STIRT trading. The show begins by discussing the recent U.S. jobs report, and the implications to the perception of economic data going forward and how that should affect the bond market. Brenden discusses how FOMC pricing has evolved, and his favorite trades. The duo begin to discuss what Fed pricing means for BoC pricing, rightly noting how cheap CAD front-end valuations are. Brenden provides his view on what pension hedging means for Canadian cross-currency basis swaps, while also highlighting key themes in global funding markets. The show ends with a discussion on the BoC’s balance sheet, and which trades Ian and Brenden think offer the most attractive opportunities at present.