Home Capital Contagion Risk Is Indirect But Real, Edward Jones SaysBy
Lender’s woes can deflate Canada’s housing bubble, hurt banks
Seen as unlikely to trigger a 2008-type financial crisis
The downward spiral of Home Capital Group Inc. could start to deflate Canada’s housing market, pushing down bank shares and the broader index, according to Edward Jones & Co.
The mortgage lender’s woes will insert caution into property funding, Craig Fehr, Canadian investment strategist at Edward Jones, said in an interview in Toronto on Wednesday. This would slow the economy because of its outsized reliance on real estate and damp prospects for the bank-heavy S&P/TSX Composite Index, he said…
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