Sentences with phrase «canadian equity underwriting»

Portfolio adjustment to the FPR should be negative for Canadian investment dealers as Canadian equity underwriting and trading declines.

Not exact matches

• Unlike in the U.S., underwriting standards for qualifying mortgage borrowers in Canada have been maintained at prudent levels resulting in mortgage borrowers here being much more creditworthy; • Canadian mortgage lenders never offered low initial «teaser» rate mortgages that led to most of the difficulties for mortgage borrowers in the U.S.; • Most mortgages in Canada are held by their original lender, not packaged and sold to third parties as is typical in the U.S., and consequently, Canadian mortgage lenders have a vested interest in ensuring that their mortgage borrowers are creditworthy and not likely to default; • Only 0.3 % of Canadian mortgages are in arrears versus 4.5 % in the U.S. and what even before the start of the U.S. housing meltdown two years ago was 2 %; • Canadians tend to pay down their mortgage faster than in the U.S. where mortgage interest is deductible from taxes, which encourages U.S. homeowners to take equity out of their homes to finance other spending, a difference that is reflected in the fact that in Canada mortgage debt accounts for just over 30 % of the value of homes, compared with 55 % in the U.S.

Canadian investment banks should seek to expand their foreign equity underwriting and trading capacities to compensate for the reduction in their Canadian revenues.

Reduced demand for Canadian equities from Canadian investors will mean lower equity underwriting and trading revenues for Canadian investment dealers because it is unlikely to be replaced by increased foreign equity trading and underwriting by Canadian dealers.

Canadian investment dealers have a significant advantage in underwriting Canadian equity issues for sale to Canadian clients because of their superior contacts with both Canadian issuers and clients.