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Monthly Archives: June 2019
Canadian banks not taking prudent reserves for rising impaired loans
Canadian financials make up 34% of the TSX composite index and are similarly overweight in most Canadian equity funds, managers and portfolios. The end to a decade long commercial and household credit boom has broad implications for Canadian lenders, borrowers, … Continue reading
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Rate cuts resuming in 2019, but Oz is no more
Yesterday, as stocks celebrated odds of US Fed rate cuts in 2019, a World Bank report reduced its semi-annual forecast for global growth to 2.6%–from 2.9% at the start of the year—and slashed its forecast for growth in trade to … Continue reading
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Repeating behaviors in real estate boom/bust cycles
In explaining why highly levered, speculative cycles are so damaging to balance sheets and financial stability, I often reference the reality that when asset bubbles burst, prices drop and debt level rise, evaporating net worth rapidly and intensifying selling pressure. … Continue reading
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