The drivers of fixed income valuation and thus its performance in Q3 2022 remained similar to those we spoke about for the first half of the year, resulting in a modest quarterly gain in total return. Inflation remained public enemy number 1,peaking at 9% in the US and 8% in Canada during the quarter, before receding through quarter end due primarily to declining energy prices.
Both the Federal Reserve and the Bank of Canada hiked their benchmark interest rates very aggressively during the quarter in response to extended inflation concerns.

Discussion of a global recession continued with increasing prices, consumer debt burden, employment levels and supply chain issues consuming the majority of the bandwidth for slowing growth theories in several key markets.