For the most part, recent strong net income will take the sting out of interest rate hikes.

Rising interest rates, rising risk?

Farm Management: What do today’s rising interest rates mean for your farm’s balance sheet

There are a number of ways that rising interest rates affect farm balance sheets. They can negatively affect cash flow, can create a need to adjust short-term and long-term liabilities and affect the value of farmland that in turn can impact the farm’s asset values. “Higher interest rates will impact operations differently based on how […] Read more



(Dave Bedard photo)

ICE weekly outlook: Canola facing uncertainty

CNS Canada — ICE Futures Canada canola contracts fell to their lowest levels in more than three months during the week ended Wednesday, but could still have more room to the downside given the general sense of global trade uncertainty. “Every commodity trader in North America or globally is scared to death right now,” said […] Read more

Watching risk and interest rates

Watching risk and interest rates

Guarding Wealth: There’s a gulf opening between the borrowing costs and what you can get on a GIC

Interest rates are rising in the U.S. and Canada. That brings opportunity to those putting money into savings accounts and guaranteed income certificates, but also pressure on those who borrow. Global politics, trade negotiations and the sheer risk of investing are separating returns on investments from the cost of borrowing. Trend setting government bond interest […] Read more






The inevitable rise in interest rates

Guarding Wealth: Interest rates are going to have to rise sooner than later. The trick will be in the timing

It is inevitable that interest rates will rise, but when that will happen, nobody knows. On Sept. 17, the U.S. Federal reserve announced that, yet again, the inevitable increase would be postponed, perhaps to December, perhaps beyond. Until then, the Fed will keep interest rates at the emergency level that has prevailed for half a […] Read more



bonds

Why should you invest in bonds?

Bonds no longer offer interest above dividend rates, 
but they are an insurance policy for market mayhem

Readers often ask why and how one should buy bonds. The reason used to be to get interest at a rate above what stocks pay as dividends. That does not work anymore, for bank stocks and big telecoms, for example, pay four to five per cent. Ten-year Government of Canada bonds pay 2.5 per cent. […] Read more