Podcast: Decoding Q4 Canadian Bank Earnings - 12 décembre 2024
In this special episode, Sohrab Movahedi, Bipan Rai, and Skye Collyer take a deep dive into Canada’s Big Six, from recent earnings results and valuations to the U.S. political landscape and expectations for 2025.
Skye Collyer is a Director of ETF Distribution at BMO Global Asset Management. She is joined on the podcast by Bipan Rai, Head of ETF Strategy, Exchange Traded Funds, at BMO Global Asset Management, and Sohrab Movahedi, Managing Director of Financials Research at BMO Capital Markets. This episode was recorded on Thursday, December 12, 2024.
ETFs mentioned in the podcast:
- BMO Equal Weight Banks Index ETF (Ticker: ZEB)
- BMO Canadian Bank Income Index ETF (Ticker: ZBI)
- BMO Aggregate Bond Index ETF (Ticker: ZAG)
- BMO Covered Call Canadian Banks ETF (Ticker: ZWB)
- BMO Covered Call Canadian Banks ETF (USD Units) (Ticker: ZWB.U)
- BMO Canadian Bank Accelerator ETF (Ticker: ZEBA)
ZEB, total returns as of 2024/11/30: 1 yr: 39.76%, 3yr: 9.68%, 5 yr 11.92%, 10 yr: 9.89%, SI: 11.25%
ZAG, total returns as of 2024/11/30: 1 yr: 8.50%, 3yr: 0.12%, 5 yr 0.60%, 10 yr: 1.97%, SI: 2.91%
ZBI, total returns as of 2024/11/30: 1 yr: 13.59%, SI: 3.61%
Terminal Rate: The interest rate level a central bank believes is consistent with a balanced economy over the long term.
Soft Landing: A period where economic growth slows and inflation returns to target, without entering a recession.
Yield to maturity (YTM): The total expected return from a bond when it is held until maturity – including all interest, coupon payments, and premium or discount adjustments.
Duration: A measure of a bond’s sensitivity to changes in interest rates. It is expressed in years and helps investors understand how much the price of a bond is likely to change when interest rates move. Essentially, duration estimates the percentage change in a bond’s price for a 1% change in interest rates.
Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
Operating Leverage: A measure of how revenue growth translates into operating income growth.
Disclaimers:
The viewpoints expressed by the speakers represents their assessment of the markets at the time of publication that are subject to change without notice at any time.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements.
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