Canada Shelves Its Plan to Eliminate Mortgage Bond Program

11/22/2023 07:02
Canada Shelves Its Plan to Eliminate Mortgage Bond Program

Canada backed away from the idea of eliminating its C$250 billion ($182.5 billion) mortgage bond program, responding to pressure from investors who wanted the product kept alive.

Canada backed away from the idea of eliminating its C$250 billion ($182.5 billion) mortgage bond program, responding to pressure from investors who wanted the product kept alive.

Canada Mortgage Bonds are securities issued by the federal government’s housing agency and guaranteed by the government, 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.

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