Investing

shorting Canadian Banks

  • Last Updated:
  • Oct 13th, 2017 5:24 pm
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Deal Addict
Jul 21, 2001
3764 posts
183 upvotes
Calgary
In a rising rate of interest environment, does this not benefit the banking system and add to the bottom line?
"i love my girl friend and my girl friend loves me ok so you cant love me"
Member
Apr 9, 2012
423 posts
113 upvotes
Markham
q649 wrote:
Feb 9th, 2017 6:17 pm
I think you should read this thread in its entirety before shorting Canadian banks.
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Yup I have read and followed. Time to short a small amount :)
Deal Fanatic
User avatar
Jul 19, 2003
7374 posts
337 upvotes
This is crazy. Banks are in the middle of offshoring and shutting down physical locations to INCREASE revenue.

What you need is a full market crash or real estate crash to even make a dent in them now.
hi!
Deal Addict
Nov 24, 2013
4089 posts
1113 upvotes
Kingston, ON
plucky duck wrote:
Feb 9th, 2017 9:54 pm
In a rising rate of interest environment, does this not benefit the banking system and add to the bottom line?
The simple answer is banks make their money on the spread between what they can borrow money for (from the BoC, for example, but also chequing balances, GICs, etc) and what they lend the money out for. In theory, regardless of high or low rate environments, they could be making the same spread.

In practice, they've increased their margins by lowering lending rates more slowly than their borrowing costs. They'll probably continue that business model by increasing rates faster than their borrowing costs increase.
Newbie
Jan 13, 2008
86 posts
27 upvotes
DYUEster wrote:
Feb 15th, 2017 2:32 pm
RY going to hit 100 soon! Woohoo
I take it you are not "shorting Canadian Banks" then. Face With Tears Of Joy
Deal Addict
Dec 6, 2006
3682 posts
669 upvotes
Toronto
cdgnfr wrote:
Feb 15th, 2017 5:07 pm
I take it you are not "shorting Canadian Banks" then. Face With Tears Of Joy
What? We all are... RY has to hit 100 to trigger stock split so our shorts will get 100% return.
Jr. Member
Jan 24, 2010
162 posts
25 upvotes
Vancouver
cdgnfr wrote:
Feb 15th, 2017 5:07 pm
I take it you are not "shorting Canadian Banks" then. Face With Tears Of Joy
Of course not. In the long train collecting my divys and capital gains Smiling Face With Sunglasses
Sr. Member
Jun 15, 2012
778 posts
60 upvotes
MB
DYUEster wrote:
Feb 15th, 2017 2:32 pm
RY going to hit 100 soon! Woohoo
Euphoria or thrill ? Lol
Image
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
Jr. Member
Jan 24, 2010
162 posts
25 upvotes
Vancouver
ukrainiandude wrote:
Feb 15th, 2017 8:20 pm
Euphoria or thrill ? Lol
Image
We are only in the hope stages. More bull market to come
Sr. Member
Oct 21, 2014
637 posts
428 upvotes
Burlington, ON
ukrainiandude wrote:
Feb 2nd, 2017 1:43 pm
Sold RY
Bought DB
If you believe we're in the euphoria stage, why did you buy DB and pretend to sell shares of RY?
Newbie
Jan 15, 2017
21 posts
12 upvotes
Loving my 200 shares of BNS bought at $54 in Jan 2016. Now have 207 shares at almost $82. The OP must losing his shirt!
Member
Apr 9, 2012
423 posts
113 upvotes
Markham
canibusIIII wrote:
Feb 16th, 2017 12:06 pm
Loving my 200 shares of BNS bought at $54 in Jan 2016. Now have 207 shares at almost $82. The OP must losing his shirt!
sell sell sell. capture the gain
Deal Addict
Dec 6, 2006
3682 posts
669 upvotes
Toronto
ukrainiandude wrote:
Feb 15th, 2017 8:20 pm
Euphoria or thrill ? Lol
Image
If you flip the picture upside down, what stage would a RY short seller be now?
Newbie
Dec 11, 2011
37 posts
9 upvotes
MONTRÉAL
boyohboy wrote:
Feb 17th, 2017 9:15 am
If you flip the picture upside down, what stage would a RY short seller be now?
Probably depression

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