Five reasons to love rising interest rates
Filed Under Main Content · Tagged: Bank Of Canada, Banks, Bond Yields, Borrowers, Cheap Money, Consumers, Deep Breath, Disaster, Economy, Fixed Income, Globe And Mail, Investors, Love, Mortgage Rates, Rising Interest Rates, Sanity, Segments, Seniors
The Globe and Mail- With the Bank of Canada poised to raise interest rates as early as June, nervous borrowers are bracing for the end of cheap money.
Big disaster, right? Hardly.
Sure, consumers carrying onerous amounts of debt will feel the pain when rates climb from today’s ultralow levels. But for others – savers, seniors and fixed-income investors, for example – higher rates can’t come soon enough.
Rising rates might even restore some sanity to segments of our economy that have gotten drunk on all the easy credit. So, with banks already ratcheting up mortgage rates and bond yields creeping higher, let’s take a deep breath and focus on the positives.
Here are five reasons to love rising interest rates…
Five reasons to love rising interest rates – The Globe and Mail
Five-Year Yields Hit Highest Since October 2008: Canada Credit – BusinessWeek
Filed Under Main Content · Tagged: Balance Sheet, Bank Of Commerce, Bloomberg Canada, Bond Market, Bond Yields, Businessweek, Canada Credit, Canadian Imperial Bank, Canadian Imperial Bank Of Commerce, Cash Bonds, Declines, Fixed Income Market, Fixed Rate, Imperial Bank Of Commerce, Mortgage Regulations, Strategist, Swap Transactions, Swaps, Toronto Banks, Treasuries
Bloomberg- Canada’s five-year bond yields rose to the highest level since October 2008 as banks hedged mortgages and the nation’s fixed-income market caught up to declines in U.S. Treasuries.
Canada’s home buyers are stepping up borrowing as they seek to beat pending changes to mortgage regulations and increases in interest rates. Banks that issue mortgages protect their balance sheet by selling similar-maturity securities in the secondary bond market or by making swap transactions.
“Banks are hedging seasonal mortgage flows, which is weighing on the five-year sector,” said Mohammed Ahmed, a rates strategist at Canadian Imperial Bank of Commerce in Toronto. “Banks are receiving a fixed-rate asset and to hedge that, they typically pay the fixed-rate in swaps, or sell cash bonds…”
Five-Year Yields Hit Highest Since October 2008: Canada Credit – BusinessWeek
Canadian mortgage rates on the rise
Filed Under Main Content · Tagged: Anticipation, Bank Of Canada, Basis Points, Benchmark Mortgage, Bond Market, Bond Yields, Canadian Mortgage Rates, Cibc World Markets, Economist, Fixed Mortgage, Fixed Mortgages, Fixed Rate Mortgages, Housing Market, Laurentian Bank, Mortgages Rates, Quot, Royal Bank, Td Canada Trust, Upswing, Year Mortgage
Times Colonist- Mortgage rates are on the upswing in Canada, signaling an end to historically low rates and an indication that the country’s housing market is finally poised to cool off.
Royal Bank, TD Canada Trust and Laurentian Bank announced Monday they are raising rates they charge on certain fixed mortgages, including the benchmark five-year mortgage, which will jump 60 basis points to 5.85 per cent effective Tuesday.
"This is actually a fairly large increase reflecting what’s happening in the bond market lately," said Benjamin Tal, senior economist with CIBC World Markets.
Anticipation over the Bank of Canada raising its overnight lending rate, possibly ahead of schedule, is pushing up bond yields, Tal said. And rising yields puts pressure on fixed-rate mortgages…
Canadian mortgage rates on the rise
How high will mortgage rates go?
Filed Under Main Content · Tagged: Bond Yields, Money, Mortgage Rates, Nbsp, Ontario Canada, Recession, Toronto Star
Toronto Star – Ontario, Canada – So recent increases in mortgage rates and bond yields have many homeowners wondering how high rates will go, how soon, and what they should do to save the most money…
