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Fixed Income Quarterly—Outlook
Relative Value
300
250
200
150
100
50
0
Source: BMO Capital Markets As at March 31, 2014
Chart 3.1
Relative Spread Graph for Selected 5-Year Indicative Spreads
Relative Spreads (5-Year)
2 0 12
2 0 13
2 0 14
V I K R
ENMA X P C T N P C C O
REF
H&R COS
TA C CUF
CPX
A QN CRR
CWT RIOCA N
BIP
A LPU
T CNQ PPL
SNC
BA M C C D A
BNNP
LB
A I L P S F W Y
HSBCSUB SLFSUB ALP
F CW N CWBTOC ENBIF
CHPU
SJR.B
PF
IGI SLA SUB DESJ
NA NFPR CIF
BELL EME RCI.B MBT THI TA P HSE TERA L
MLISUB MFCI BNS
CM TQM CWBsredghwy SU IPL
GWL CL
TD
RY MFC SFL
IPF BMO ENBI CTR A XP V W DCX EMA SDM
CPR
RYCOV
CCDJ HSBCSNR WF GECC TM
LOWMA T HDB BMW
UNG EPCOR 407Sub JD ATLK FTBC
DPTD DPRY DPBMO DPNA
BCF GZM
TH ETRENBP TER TRP FTA
NAVSnr VAA NAVsub
HYO
CUI GTAA ENBG
AAA AA+ AA AA- A+ A A- BBB+ BBB BBB-
Issuer
Bank of Montreal (Snr)
Bank of Nova Scotia (Snr) CIBC (Snr)
GE Capital Canada
Great West Lifeco
NAV CANADA (Snr)
Royal Bank of Canada (Snr) Toronto Dominion Bank (Snr)
AA Rated
Sector
Banks
Banks
Banks
Diversified Financials Diversified Financials Infrastructure
Banks Banks
Ratings Spread
AA- 76 alp AA- 78 desj AA- 76 cui AA 79 enbg AA- 89 enbi AA 64 ter AA- 78 gzm AA 74 gtaa
Issuer
Alliance Pipeline
Capital Desjardins
CU Inc.
Enbridge Gas Distribution Enbridge Inc.
FortisBC Energy Inc. Gaz Metro
GTAA
5 Year
A Rated Sector
Pipelines
Banks
Utilities
Utilities
Pipelines
Utilities
Utilities
Infrastructure
Utilities
Diversified Financials Diversified Financials Banks
Diversified Financials Pipelines
Utilities
Banks
Ratings Spread
A- 126 407Sub A+ 104 baun A+ 68 bell
A 66 cnq
A- 92 ctr A- 69 eca A+ 73 wn A 67 l
A+ 66 mbt A+ 110 ema A+ 104 su A+ 79 t
A+ 92 toc A- 74 tac A- 80
A+ 86
Issuer
407 International Inc. (Sub) Bell Aliant
Bell Canada
Canadian Nat. Resources Canadian Tire
EnCana Corp. George Weston Loblaw
Manitoba Telecom Nova Scotia Power Suncor
TELUS Corp. Thomson Corp. TransAlta Corp.
BBB Rated Sector
Infrastructure Communications Communications Oil & Gas
Retail
Oil & Gas
Retail
Retail Communications Utilities
Oil & Gas Communications Media
Utilities
Ratings Spread
BBB 83 BBB 122 BBB+ 106 BBB+ 101 BBB+ 95 BBB 114 BBB 123 BBB 108 BBB 119 BBB+ 83 BBB+ 98 BBB+ 100 BBB+ 118 BBB- 228
hyo Hydro One
igi IGM Financial
mfci Manulife Financial DPNA National Bank (Snr)
sfl Sun Life
trp TransCanada Pipelines ung Union Gas Ltd.
wf Wells Fargo
Source: BMO Capital Markets
bps