Canadian companies are at risk of facing higher interest costs as an unintended consequence of a government proposal to eliminate the country’s $260 billion (US$195 billion) mortgage bond program, an investors’ lobby group has warned.
Prime Minister Justin Trudeau’s government is considering winding down the Canada Mortgage Bond program in a bid to reduce borrowing costs. CMBs are guaranteed by the federal government’s housing agency, giving them the highest possible credit ratings, since Canada is rated triple-A by S&P Global Ratings and Moody’s Investors Service. Despite that, the notes trade at a higher yield than Canada government bonds.
“A change in the underlying GoC yields will increase funding costs for issuers and will reduce valuations of existing securities,” according to the letter signed by Peter Waite, executive director of the CBIA. The group represents more than 50 institutional investors in Canada that collectively manage more than $1.8 trillion in fixed-income assets, the organization said.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stop bashing housing investors. Canada desperately needs themIf not the investors, who will pay to maintain and own housing for millions of Canadians? Read more from Murtaza Haider and Stephen Moranis
Read more »
Stop bashing housing investors. Canada desperately needs themIf not the investors, who will pay to maintain and own housing for millions of Canadians? Read more from Murtaza Haider and Stephen Moranis
Read more »
Stop bashing housing investors. Canada desperately needs themIf not the investors, who will pay to maintain and own housing for millions of Canadians? Read more from Murtaza Haider and Stephen Moranis
Read more »
BNB finds favor with investors as BTC dominance risesSantiment recently shortlisted Binance Smart Chain’s BNB as one of the altcoins still receiving significant attention. In other words, it is a good candidate for traders looking for decent price movements under recent market conditions.
Read more »
Thames Water investors reluctant to stump up cash, regulator saysThames Water is seeking to raise an additional £1-billion in equity to help upgrade its infrastructure and cope with the rising cost of its £14-billion debt pile
Read more »
Investors spend nearly $200 million on 'worthless' Bed Bath & Beyond sharesInvestors have spent almost $200 million trading theoretically worthless shares in Bed Bath \u0026amp\u003B Beyond Inc. since it went bankrupt. Read more.
Read more »