indicatorThe Twenty-Four

Opening the window

Insights from the ATB Cormark Capital Markets Fixed Income, Currencies, and Commodities (FICC) team

By ATB Economics 5 August 2026 2 min read

It’s no secret that Canada has a lot of work to do to build its economic muscles. This has to be a group effort, with businesses of all sizes, non-profit organizations, investors, workers, educators, community leaders, and policymakers all pulling together.

Easier said than done, especially with uncertainty running high.

To this end, Greg Greer from the ATB Cormark Capital Markets Fixed Income, Currencies, and Commodities (FICC) team put together some thoughts in a recent Globe and Mail article on how businesses can push through the uncertainty and achieve growth for themselves and the Canadian economy.

As Greer argues, “Canada holds some distinct advantages that offer potential growth and investment opportunities through the remainder of 2026 and beyond.”

Advantage #1: Stability

  • Long-term borrowing costs in Canada have remained stable, and the participation of global investors in Canadian-dollar bond issues indicates that Canada remains a safe destination for capital.
  • The loonie has weakened, but it has been an orderly decline and one that can be helpful in times of trade disruption.
  • Despite periods of market anxiety over energy pricing, geopolitical conflict, and trade, Canadian bond yields have largely returned to levels from the beginning of the year. That suggests a predictable and supportive landscape for investors and issuers alike.
  • A cornerstone of the investment environment is the Bank of Canada and its monetary policy, which has kept short-term interest rates low and core inflation near the 2% target. While also enhancing our national credibility, it helps to stabilize long-term borrowing costs that are key to most major projects.
  • These conditions create a window of opportunity for companies looking to secure capital and fund major projects—investment Canada needs in order to fuel its long-term growth.

Advantage #2: Reliable energy

  • While the energy sector could be said to present the most challenges, it also holds the greatest opportunities.
  • For Canadian producers who have been actively monitoring events, turbulence has provided them with an opportunity to use the increased cash flow to invest in new opportunities and strengthen their balance sheets.
  • The closure of the Strait of Hormuz has demonstrated the importance of secure supply. This positions Canada well. However, because of constraints in existing infrastructure, we are unable to take full advantage of the increased demand across the world.
  • The momentum from growing governmental support for expanding Canada’s energy sector is coinciding with an advantageous financing window. Canada is known as a stable and reliable partner. That reputation, along with global demand for energy and other key commodities, provides an opportunity for increased investment and expanded export capacity.

Moving forward

Canada is entering the second half of 2026 from a position of credibility, diversification and growing confidence. With the right preparation and a greater sense of urgency, that position can serve as the basis for stronger and more durable growth.

For more insight from the ATB Cormark Capital Markets FICC team, check out their recently released report here.

 

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Answer to the previous trivia question: Originally named the Interprovincial Pipe Line Company, Enbridge was incorporated in 1949.

Today’s trivia question: What was broadcast for the first time over radio on this day in 1921?  

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