New rules in the bond market on the horizon

With fixed rate mortgages being tied closely to bond yields, it’s important to keep an ey on new regulations in that industry. Tomorrow, the Investment Industry Regulatory Organization of Canada (IIROC), will propose new rules on Friday that will revamp bond market pricing in an effort to make it more transparent and more cost effective for potential investors. By the sounds of things, consumer protection is one of the main goals here. The full story is available here, and I’ll be posting a new story tomorrow once we see what the new rules are. Ideally, I’m hoping that these new rules will keep bond yields low, thus keeping fixed rate mortgages low as well. If and when inflation does kick in, fixed rates will become increasingly popular, particularly amongst the more risk adverse clients. Stay tuned.