News Formal

RBC Capital Market's Report Warns of Mortgage Payment Shock in Canadian Banks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 29 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 92%

Interest Rates News

Credit Losses,Finance,RBC Capital Market

RBC Capital Market's bank research team predicts a significant increase in mortgage payments in the next three years, posing a risk to Canadian banks. Unless interest rates decline, credit losses are expected to rise in 2025 and beyond.

RBC Capital Market’s bank research team, led by Darko Mihelic, published a 39-page report discussing the upcoming mortgage payment shock on domestic earnings in the sector,

“We believe a significant number of mortgages are coming due in the next three years and that payment shock could be significant and represents a tail risk to Canadian banks.

“Over the past month, we have been arguing that the chances of a 4Q rally have fallen considerably. Our observations on narrowing breadth, cautious factor leadership, falling earnings revisions and fading consumer and business confidence tell a different story than the consensus, which sees a rally into year-end that’s based mostly on bearish sentiment and seasonal tendencies.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

In the Market-Treasury market braces for seismic SEC ruleExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »