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
The financial future: What’s in store for 2009
Filed Under Main Content · Tagged: Businessweek, Businessweek Magazine, Caveats, Cbc Ca, Financial Future, Mortgage Problems, Nbsp, Subprime Mortgage, Toronto Ontario Canada, United States
CBC.ca – Toronto,Ontario,Canada – A year ago many forecasts were upbeat, with caveats about the possibility of subprime mortgage problems in the United States. BusinessWeek magazine carried …
