Page 24
Fixed Income Quarterly—Outlook
Relative Value
Chart 3.3
Relative Spread Graph for Selected 30-Year Indicative Spreads
500
400
Relative Spreads (30-Year)
Relative Spreads (10-Year)
450
350
400
300
350
300 250
2012
2 0 11
2013
2 0 12
2014
C u r r e n t
T A C
CPX
TA C
AQN
H&R
250
BIP
CHPU CWT
BAM BIP RIOCAN CCA
TERA SNC SOBEY CCDBA M BNNP BA UNSFWY
2 0 0
MNE
P C S T L F A S
CCO BNNP THI SJR.BSJR.B U O I T C W B A L P U B A U ML N B T
MLISUB
NFPR LW HSBCSUB
SLFSUB
ALP
CCO CTR ENBIF BELL RCI.B WN
METRO SFWY ECA
EME
IGI MFCI
INTACT T RCI.B
PPL
MAELTGRO L
2 0 0
150
150
100
100
50
50 0
PC IGI MFCI
S L A S IUPSBFL F S U B
IPL N A C W B s r C T R
T E R A ALG
C P R
P F
GECC GWL TD
BELLSU HSE
HSBCSNR
DESJ
SLA SUB CM BRNYS
ENBI FIN
edghw y
T DPGTDECCDPRY DPGBMWOL DPNA LOWMAT THGZM HYOHI ENBP ENBI SUEMA WE
CCDJ CL WF DPBNS DPCIBC CL
SFL
NFPR
HZNHLD TRP INTUANCGT
PPL CPR
PF
SFL BMO
edghw y WE
IPL
A A-- BBBB++
407Sub
BCF CU
407Sub
RYCOV
AAA
NAVSnr
NAVsub CUI PWRSTM TERP FETPSCOR EMA BCF HALFX CUI ENBPATLK
VAA
AERMOHNYO TH GTAA ETRATLEKNBG UNG
NAVsub HYO GZM ETR ENBGTER FTA FTBC
NAVSnr VAA
GTA A
AAA++
AA
A-- AA++
BBBB BBB--
Source: BMO Capital Markets As at March 31, 2014
AA Rated
Issuer Sector Ratings Spread
A Rated
Issuer Sector Ratings Spread
BBB Rated
Issuer Sector Ratings Spread
30 Year
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)
Banks AA- Banks AA- Banks AA- Diversified Financials AA Diversified Financials AA- Infrastructure AA Banks AA-
Banks
- alp - desj - cui
143 enbg 151 enbi 125 ter
Alliance Pipeline
Capital Desjardins
CU Inc.
Enbridge Gas Distribution Enbridge Inc.
FortisBC Energy Inc. Gaz Metro
GTAA
Pipelines
Banks A+
Utilities A+
Utilities A
Pipelines A-
Utilities A-
Utilities A+
Infrastructure A
Utilities A+
Diversified Financials A+
Diversified Financials A+
Banks A+
Diversified Financials A+
Pipelines A-
Utilities A- 137 Banks A+ -
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.
Infrastructure Communications Communications Oil & Gas
Retail
Oil & Gas
Retail
Retail Communications Utilities
Oil & Gas Communications Media
Utilities
BBB 156 BBB 238 BBB+ 189 BBB+ - BBB+ 195 BBB - BBB 220 BBB 195 BBB - BBB+ 142 BBB+ 163 BBB+ 183 BBB+ - BBB- 365
- gzm AA- gtaa
131 bell 128 cnq 154 ctr 132 eca 131 wn 129 l 129 mbt 184 ema 192 su
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
- t 176 toc 142 tac
A-- 407Sub - baun
Source: BMO Capital Markets
bps
bps