Real Estate

Bank of Canada expands balance sheet list to mortgage backed bonds

  • Last Updated:
  • Nov 27th, 2018 1:24 pm
Newbie
Jan 19, 2018
61 posts
121 upvotes

Bank of Canada expands balance sheet list to mortgage backed bonds

https://www.bnnbloomberg.ca/bank-of-can ... -1.1172891

The Bank of Canada is ready for the collapse in prices. Like the USA in 2007, 2008 the banks will upload toxic mortgage debt from the defaults.

Thanks Mr. Taxpayer for bailing out the speculator in: Oakville, Markham, Vaughn ..........etc.
20 replies
Member
Oct 22, 2017
223 posts
305 upvotes
Can't wait for Black Friday 2019 for all the 50% off dt properties
Member
May 18, 2015
484 posts
686 upvotes
Thornhill, ON
lydia82 wrote: https://www.bnnbloomberg.ca/bank-of-can ... -1.1172891

The Bank of Canada is ready for the collapse in prices. Like the USA in 2007, 2008 the banks will upload toxic mortgage debt from the defaults.

Thanks Mr. Taxpayer for bailing out the speculator in: Oakville, Markham, Vaughn ..........etc.
Collapse? Toxic mortgage debt?

That's conspiracy theory! Just saw CP24 Hot Properties debunk this... Turns out the BoC is simply trying to "broaden the range of high-quality assets in its operations to manage its balance sheet."

Mods please close this thread.
Deal Addict
Jan 26, 2016
2240 posts
2272 upvotes
Toronto, ON
jonkoktosen wrote: Yep, just the central bank buying up bad mortgage back securities, no big deal, never happened before. slow news day. nothing to see here.

get help.
Deal Expert
User avatar
Apr 21, 2004
58648 posts
24637 upvotes
OP try CTRL + C and the then CTRL + V.

Much easier than mistyping the body of the article. :)

The Bank of Canada plans buy for the first time government-backed mortgage bonds in a bid to broaden the range of high-quality assets in its operations to manage its balance sheet.

The move, which is part of a decision of including government-guaranteed debt issued by federal Crown corporations, will allow Ottawa-based central bank to offset continued growth in bank notes, the central bank said in an statement Friday. It will also give it flexibility to further reduce its participation in primary Canadian government bond auctions to help boost the tradeable float and support liquidity in the secondary market.

A “small portion” of its purchases will be Canada Mortgage Bonds, which are guaranteed by Canada Mortgage and Housing Corp. The federal Crown corporation has an issuance limit of $40 billion for 2018. Purchases of mortgage bonds will be conducted in the primary market starting later this year or early 2019, the central bank said.

“In terms of CMBs, we need a little more detail on how the BoC will be participating, but it does look to be supportive of spreads,” Mark Chandler, head of fixed-income research at RBC Capital Markets, said in a message. “I would suggest only a modest impact until we learn more.”

Expanding the list of eligible assets has no implications for monetary policy or financial stability, the bank said. Bank of Canada held $78.2 billion of Canadian government bonds and $22.2 billion of treasury bills for balance sheet management purposes as of Nov. 21, according to its website.
Newbie
Jan 19, 2018
61 posts
121 upvotes
jonkoktosen wrote: Collapse? Toxic mortgage debt?

That's conspiracy theory! Just saw CP24 Hot Properties debunk this... Turns out the BoC is simply trying to "broaden the range of high-quality assets in its operations to manage its balance sheet."

Mods please close this thread.
CP24 Hot Property is your source of information? They have no vested interest in the market. Why does the BOC have to buy this high quality product? Because the market won;t touch it.
Would you buy a bond secured by mortgage debt in Toronto? I want over 15% return on that bond. Only the BOC will take 3% return to wash the banks of the toxic debt.
Why are you asking the moderators to shut down this topic? What are you scared of?
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
Did I tell you Lydia I’m selling my house on this info .. found a new gem of a house in North Korea! Adidos losers in Toronto, hello my new lord and savior dictator Kim!
Last edited by Sanyo on Nov 25th, 2018 10:26 am, edited 1 time in total.
Banned
Nov 18, 2014
824 posts
769 upvotes
Toronto, ON
lydia82 wrote: CP24 Hot Property is your source of information? They have no vested interest in the market. Why does the BOC have to buy this high quality product? Because the market won;t touch it.
Would you buy a bond secured by mortgage debt in Toronto? I want over 15% return on that bond. Only the BOC will take 3% return to wash the banks of the toxic debt.
Why are you asking the moderators to shut down this topic? What are you scared of?
People will still default and lose their homes if they can’t make payments as rates rises, nothing changes. The only thing that changes is the banks won’t be demanding them to cough up collateral as the risk is offloaded to the boc.

This is why you invest in bank stocks in Canada as they are too big to fail and will always get bailed out by taxpayers.
Deal Addict
May 9, 2017
1261 posts
1393 upvotes
lydia82 wrote: https://www.bnnbloomberg.ca/bank-of-can ... -1.1172891

The Bank of Canada is ready for the collapse in prices. Like the USA in 2007, 2008 the banks will upload toxic mortgage debt from the defaults.

Thanks Mr. Taxpayer for bailing out the speculator in: Oakville, Markham, Vaughn ..........etc.
Sigh ... another post about impending doom.
How does this bail out speculators???
The BOC would be buying new (in the primary market) CHMC bonds guaranteed by government that would have otherwise been bought by other investors.
The guarantee is for investors of the bonds not real estate speculators.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
NotRobot wrote: Sigh ... another post about impending doom.
How does this bail out speculators???
The BOC would be buying new (in the primary market) CHMC bonds guaranteed by government that would have otherwise been bought by other investors.
The guarantee is for investors of the bonds not real estate speculators.
There is like 3 or 4 of these people here who do nothing but cry about speculators. They’re really bringing down the quality of this forum with their rhetoric. It’s all doom and gloom. Die landlords, investors speculators!!!!
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
JayLove06 wrote: There is like 3 or 4 of these people here who do nothing but cry about speculators. They’re really bringing down the quality of this forum with their rhetoric. It’s all doom and gloom. Die landlords, investors speculators!!!!
lydia has always been pretty bad when it comes to her rhetoric. remember she had a "system" that could predict housing prices, havent seen that for a while...
Newbie
Jan 19, 2018
61 posts
121 upvotes
You have not paid me for it. Go check the freebie section.
Newbie
Jan 19, 2018
61 posts
121 upvotes
rkanwar109 wrote: People will still default and lose their homes if they can’t make payments as rates rises, nothing changes. The only thing that changes is the banks won’t be demanding them to cough up collateral as the risk is offloaded to the boc.

This is why you invest in bank stocks in Canada as they are too big to fail and will always get bailed out by taxpayers.

100% agree.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
lydia82 wrote: You have not paid me for it. Go check the freebie section.
Oh cause your a top tier economist that people will pay for it ... did you predict Toronto up 8% this year?

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