Trade Talk, December 2006

Table of Contents

In this issue...

Since the inception of Global Custodian magazine's Major Market Agent Bank Review in 1989, CIBC Mellon has been top-rated 16 times, with this year being no exception.  The annual survey measures the quality of service provided by custodians to their domestic and cross-border clients across 25 major markets.

The Task Force to Modernize Securities Legislation in Canada (the Task Force) was commissioned in June 2005 by the Investment Dealers Association of Canada. Its mandate was to make recommendations to modernize Canada’s securities legislation, while enhancing the competitiveness of Canada’s capital markets and protecting individual investors.

Large-scale asset movements may be precipitated by changes in investment manager, universe or style, or by shifts in asset allocation, rebalancing or fund mergers. If poorly managed, the costs of such a large scale asset movement can significantly erode a plan’s value. Transition managers seek to minimize these costs by using multiple sources of liquidity in a systematic and risk-controlled fashion.

In today's environment of volatile stock markets and rising interest rates, alternative, non-traditional asset classes may provide the balance needed to increase a portfolio's performance and increase returns.

As we close our 10th anniversary year, and prepare to kick off the new year (and decade), we continue to execute initiatives that will support your asset servicing needs today - and in the future.  This includes innovative technology solutions that are essential to administering today’s large, complex and global investment instruments.

As we write, North American capital markets couldn't seem happier with the current economic environment. Equities have had a solid run, as have bonds. Moreover, the various temperature readings for market fears show an almost devil-may-care attitude. Despite racking up big gains on the S&P 500, the Vix measure of implied volatilities has headed steadily lower. In the bond market, signs of a softening economy have been accompanied by narrow corporate spreads that point to limited concerns about defaults ahead.

2007 Trade Talk Calendar

This issue by:
Linda Bernard
John Egar
Sharon Grewal
Thomas C. MacMillan
Avery Shenfeld

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Trade Talk® is provided for general information purposes only and CIBC Mellon Global Securities Services Company, CIBC Mellon Trust Company, CIBC, The Bank of New York Mellon Corporation and their affiliates make no representations or warranties as to its accuracy or completeness. Readers should be aware the content of this publication should not be regarded as legal, tax, accounting, investment, financial or other professional advice nor is it intended for such use.