Joining us today on the podcast is Portfolio Manager Sri Tella, who manages several portfolios including Fidelity Corporate Bond fund and Fidelity Tactical Fixed Income Fund. He discusses the Bank of Canada’s decision to raise rates, the effect on Canadian mortgages, and where he sees opportunity within fixed income markets. Sri explains to host Pamela Ritchie that while the increase was a bit of a surprise, the rationale behind it is consistent with historical trends. Despite recent rate increases, Sri says that the economy still looks strong due to various structural factors causing a delay in their impact. The high leverage and mortgage debt of the Canadian consumer is a concern, but he says that the nature of rollovers and refinancing mean it will take several years before the impacts of rate increases are fully felt.

Recorded on July 14, 2023.

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