Podcast: Investing Post-U.S. Election - 7 novembre 2024
Donald Trump has been elected the 47th U.S. president. In this special episode, ETF Strategist Bipan Rai, and your host, Erika Toth, recap the results and digest the market’s reaction. They also discuss several vital themes to keep an eye on in the months ahead as the new administration takes office.
Erika Toth is a Director of Institutional and Advisory for Eastern Canada at BMO Global Asset Management (BMO GAM). She is joined on the podcast by Bipan Rai, Head of ETF Strategy, at BMO GAM. The episode was recorded live on Thursday, November 7, 2024.
ETFs mentioned:
USMCA: The United States-Mexico-Canada Agreement
IEEPA: The International Emergency Economic Powers Act
Yield curve: A line that plots the interest rates of bonds having equal credit quality but differing maturity dates. A normal or steep yield curve indicates that long-term interest rates are higher than short-term interest rates. A flat yield curve indicates that short-term rates are in line with long-term rates, whereas an inverted yield curve indicates that short-term rates are higher than long-term rates.
Duration is 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.
A credit spread, also known as a yield spread, is the difference in yield between two debt securities of the same maturity but different credit quality.
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.
Disclaimers:
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