Market Commentary The performance of Canada Mortgage Bonds (CMB) of five years, offered by the Canadian government, fell by about 8 basis points last week, mainly because of widespread pessimism regarding the economy for the new year and dire predictions made by economists of the major Canadian banks. Indeed, economists are forecasting an increase of less than 2% and no significant improvement in the unemployment rate. The rate of unemployable Canadian increasing for three consecutive months, unfortunately reinforces this sad overview: In December, the rate rose one-tenth of a percentage point to 7.5%. Due to continued uncertainty in global markets, it is more expensive to finance other credit products (eg, private sector securities, mortgages), in line with funding levels of governments
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