Private Credit Defaults Risk Reaching 5% Next Year, Bank of America Says
Defaults in corporate private credit will exceed those in the syndicated loan market next year if interest rates remain higher for longer, Bank of America Corp. says.
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Defaults in corporate private credit will exceed those in the syndicated loan market next year if interest rates remain higher for longer, Bank of America Corp. says.
Current home prices in Canada can’t be justified if medium-term interest rates stay elevated, a former Bank of Canada official said, underscoring the risk to one of the country’s most important sectors.
Treasury 10-year and 30-year yields reached new multiyear highs Monday as a selloff in bonds resumed in the kickoff to trading in the final quarter of the year.
New Zealand’s central bank is expected to keep interest rates on hold 10 days out from a general election, but policymakers may leave the door open to another increase if needed to tame inflation.
Alecta, the Swedish pension fund embroiled in the SVB fallout and the country’s recent real estate turmoil, has announced that its chairman will leave with immediate effect.
Mar 29, 2017
The Canadian Press
TORONTO -- Reducing the Greenbelt lands is not one of the options Ontario's Liberal government is considering as it tackles housing shortage in the province, Premier Kathleen Wynne said Wednesday.
The government, she said, is actually committed to expanding the Greenbelt, which is about 800,000 hectares of protected land that borders the Greater Golden Horseshoe area surrounding Lake Ontario.
"The Greenbelt is a hugely important swath of land that is like the lungs of this highly populated part of the province, so that's not something that we're looking at," said Wynne. "But we recognize that housing affordability is a huge, huge issue."
Finance Minister Charles Sousa has said he plans to include measures in the spring budget to address the red-hot housing market in the Greater Toronto and Hamilton Area, while taking into account different circumstances in the rest of the province.
The average price of a detached home in Toronto broke the $1.5-million mark for the first time last month.
The province already doubled the rebate on its land transfer tax for first-time homebuyers to $4,000 and raised the same tax on homes that sell for more than $2 million. But Wynne said her government is looking at more ways to make it more affordable for people to get into the housing market.
Sousa unsuccessfully urged Finance Minister Bill Morneau to include in his budget changes to the taxation of capital gains on the sale of homes that are not classified as a primary residence, as a way to address speculative investors flipping homes.
Speculative investing in the real estate market -- buying a home in the hope of turning a profit rather than to live in -- is believed to be one of the culprits behind the soaring house prices.
Ontario's budget is expected to be unveiled in the coming weeks.
The provincial government has proposed to add approximately 9,000 hectares to the Greenbelt, giving four parcels of land identified by Hamilton and Niagara Region "protected countryside" designation and 21 major river valleys and seven associated coastal wetlands "urban river valley" designation.
The proposal also includes establishing Greenbelt-level protections for wetlands, woodlands and rivers beyond the Greenbelt.