Spring 2010 Deposit and Fixed Income Report

At the end of 2009, 56% of the financial wealth of Canadian 
households was held in deposits or other fixed income investments, a 
sure sign that the economic and financial pain inflicted by the 
recession and tumbling equity markets have not yet been forgotten.

But situations change. A recovering economy, a steepening yield 
curve, and a much improved tone to equity markets are combining to 
present a tempting range of opportunities for safety-conscious 
investors. Some portion of household financial assets that have been 
accumulated in the safety of a savings account, term deposit or 
fixed income fund may begin to shift further out along the risk 
spectrum. Will households take a gradualist or aggressive approach 
to changing their risk profile? Will we see renewed interest in 
downside protection vehicles such as market-linked GICs and PPNs?

The Spring 2010 edition of the Deposit and Fixed Income Advisory 
Service (DFIAS) report, which is now available, provides a template 
for assessing these and many other questions. DFIAS provides a 
detailed and multi-lens approach to the dynamics of this $1.5 
trillion market and its inter-relationships with other market 
sectors. It examines a wide range of instruments, from premium 
savings accounts to PPNs, and provides insights into the influence 
of administered and market interest rates on various product 
categories. The business is also examined from a regional 
perspective and, of equal importance, the channels—both direct and 
advice—through which this business flows.

This edition provides our subscribers with expanded coverage of 
three areas of growing importance: tax-free savings accounts, 
principal-protected notes, and guaranteed interest annuities.