Q: Dear 5i team.
CBIL appears to have very limited history as inception appears to be April/23.
Can you please provide your best guess on how this may perform in times of interest rate volitility?
Appreciate your help as always.
CBIL appears to have very limited history as inception appears to be April/23.
Can you please provide your best guess on how this may perform in times of interest rate volitility?
Appreciate your help as always.
5i Research Answer:
CBIL invests in 0-3 month T-bills in Canada. With rates coming down, the yield on CBIL will likely decline slightly in line with market rates. It is a very low risk investment however, and should protect an investors capital even in times of rate increases/decreases. Returns will largely be in line with the yield on the portfolio which will be tied to rates.