Potential Strategies: Long Canadian Government Bond Futures Contracts
In this article, we discuss several use cases for the 30-Year Government of Canada Bond Futures (LGBTM) in Canada.
Related Articles
-
February 20, 2024With the turn in the monetary policy cycle, clients should re-familiarize themselves with the timing option in futures contracts, positive futures basis, and any implications for their own portfolio, especially in the Two-Year Government of Canada Bond Futures (CGZ™) contract. The marks left by the price reversal early February make predicting the supply/demand pressure on the roll a difficult exercise this quarter. However, relative value managers should benefit from the rich/cheap opportunities currently available between futures contracts as well as various bonds in the delivery baskets of the Two-Year, Five-Year and Ten-Year Government of Canada Bond Futures contracts. First notice is February 28, and the liquid part of the roll period will probably be Friday, February 23, and February 26-27.
March 19, 2024In this edition, we take a look at Canadian Bond Futures Inter-Commodity Spreads following their recent inclusion on Bloomberg. The article provides an overview of quoting conventions to help investors better understand quoting standards for curve spread trading and support the efficient execution of these more popular spreading strategies. -
February 13, 2024Fixed income managers often come in two broad types; those who focus on the macroeconomic perspective, or big picture, and those who focus on the minutia of relative value trading. Fortunately, different economic situations usually afford both types of manager ample opportunities although there are clearly “good times” for macro traders and “good times” to be a relative value trader. We suggest that 2024, due to the probable turn in monetary policy and the volatility associated with the end, or anticipated end, of a monetary policy cycle, will be a year where getting the big picture right is far more important than getting the details right.
April 26, 2024Benchmark interest rates are crucial in directing investment strategies, shaping economic policies, and impacting lending rates in the global finance landscape. In Canada, the shift from the Canadian Dollar Offered Rate (CDOR), the recognized financial benchmark for Bankers’ Acceptances (BAs), to the Canadian Overnight Repo Rate Average (CORRA) as a reference benchmark rate marks a significant transformation in the financial decision-making process.
