Segments of the Canadian Fixed Income Market

SC Short Term Corporates

MC Medium Term Corporates

LC Long Term Corporates

Canadian investment grade bonds: Annual total return

This chart shows the wide range of returns earned by the major components of the fixed income market:

•Maturity: short, mid, and long term bonds

•Sector: federal, provincial, and corporate bonds

*As of Sept 30th 2010

SP Short Term Provincials

MP Medium Term Provincials

LP Long Term Provincials

SF Short Term Federals

MF Medium Term Federals

LF Long Term Federals

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

SC 2.6 LF 13.7 SC 9.8 LP 12.4 LC 13.2 LC 10.6 LF 14.5 LC 4.9 MF 5.0 MF 14.9 LC 25.9 LC 15.4

SP 2.2 LP 13.5 SP 9.5 MC 11.0 MC 8.9 LF 10.4 LP 13.7 LP 4.5 LF 4.8 LF 12.3 MC 21.3 LF 14.6

SF 2.2 MP 11.5 MC 9.1 MP 10.9 LP 8.6 LP 9.9 LC 13.2 MC 4.4 SF 4.6 SF 10.5 SC 11.0 LP 12.6

MC -0.6 MF 11.2 SF 9.1 LF 10.4 LF 7.4 MC 8.2 MC 6.4 SC 4.3 SP 4.3 SP 8.9 MP 5.5 MC 8.9

MP -1.9 MC 9.9 LC 8.0 LC 10.3 MP 6.5 MP 7.9 MP 5.7 MP 4.1 LP 4.2 MP 8.8 LP 5.0 MF 8.9

MF -2.3 LC 9.3 MP 7.9 MF 9.9 SC 6.4 MF 7.4 MF 5.2 SP 3.9 MP 4.1 SC 5.3 SP 3.9 MP 8.8

LC -4.7 SP 8.6 MF 7.2 SC 6.4 MF 5.9 SC 5.5 SC 2.7 SF 3.9 SC 3.2 LP 2.2 SF 1.5 SC 4.4

LP -5.7 SC 8.3 LP 6.3 SP 6.4 SP 4.6 SP 5.0 SP 2.3 MF 3.8 MC 1.0 MC -1.2 MF -1.6 SP 4.0

LF -6.7 SF 8.1 LF 5.2 SF 6.1 SF 4.6 SF 4.9 SF 2.2 LF 3.0 LC -0.2 LC -11.7 LF -3.8 SF 3.5

Source: DEX, 2010