Q: HSAv had a big decline, mid session, on Monday. Any reason for such an unusual decline for this security?
5i Research Answer:
HSAV trades at a premium of 0.37% to its NAV as of yesterday, and given the concerns over tariffs yesterday, Canadian bond yields (and expectations for future rate cuts) moved significantly. If tariffs were implemented, it would have a detrimental impact to the Canadian economy, thus pulling forward rate cuts, and thus HSAV would offer a lower yield. Investors were likely selling into this news which pulled the premium to its NAV lower (since it continues to trade at a premium there is still some potential downside if it trades at its NAV).