After a period of aggressive quantitative tightening in 2023, the Bank of Canada held the overnight rate at 5% in January. In the first Federal Open Market Committee statement of the year, the US Federal Reserve announced it’s holding the target range for the federal funds rate at 5.25%-5.50%.

In the February edition of Market Spotlight, we suggest investors are unlikely to see further rate hikes this year, and that fixed income will offer investment opportunities as a result.

Aaron Young, CFA, Vice-President, Global Fixed Income, CIBC Asset Management discusses how the pause in rate hikes means fixed income could offer investors attractive income and upside potential. Ebad Saif, Associate Client Portfolio Manager, Global Fixed Income, CIBC Asset Management highlights how target maturity bond funds and discount bonds can offer both cash flow and the advantages of traditional bond mutual funds.

In addition to the latest edition of Market Spotlight, Aaron Young is also featured in our latest Expert Access video series as he discusses seizing the opportunity in an outlier period.

At CIBC Private Wealth, we take a comprehensive approach to managing, building and protecting your wealth. If you'd like to discuss this market and economic update in more detail or have questions about your investments, please get in touch with me anytime.