RE:Interest Squeeze Risk I have to preface I have no expertise on understanding the internal financings of the company and how it conducts is buisness and how the financings work so we will need someone to fully answer your questions as my understanding is rather basic.
But as far as opinion and what I kinda understand:
I would expect that smaller more personal customer mortgages to slow a little due to the rates rising, but I don't think it would effect the bigger and short term mortgage customers as much. I don't think the impact will be major as someone needs to own properties and there will always be movement in property ownership.
I've only been invested with them within the 10 year window (August 2013) so in my window we have experienced pretty steady BOC prime rates within I believe half a percent until the Covid period, so this is new territory for myself, but I also don't see it as a substantial effect on profitability from a stand point of they lend at a higher rate that is liquid with the rate changes within the mortgage agreements be it fixed or variable terms, obviously fixed rate reactions will be slower as they need to come near the end of the term (which is what I believe you mean by spread erosion) and smart people on variable or at the end of fixed should have been locking into the fixed rates during this low period, but I don't know if they have. I only know one of my friends who was able to make a move took my advice and locked in, others were already locked in at the pre-Covid rates with a couple years of term still left or were content at variable and not willing to lock into something, which is dumb cause your already locked into paying for a house, might as well pay the best rate that you can for the period when it's advantageous.
I do not keep tabs on how much we borrow or utilized bonds and other instruments to raise funds, but I would assume that the past year or so they have been building lending capabilities with a pair of rights offerings and this is the second special offering that will be paid in shares rather than cash payout to get/keep money in house partially because of increased activity due to lower rates, but also preparing for the rising environment.
Previously, in my experience we were effected by mortgage sector rules, I believe the first one was the abolishment of +25 years and a few other things, and then more recently the stress tests and other safety/qualification requirements. It seems that the stress tests have been beneficial as I believe it pushed more people out of the larger banks and into more alternative mortgage options such as us. My assumptions could be way off base.
Most of my understandings are just based on experience in the almost 9 years of investment here and trying to read the company's information passed out with a fine tooth comb, I somewhat blindly believe they know what they are doing and will do the best for us, all I can do is try and choose when is best for myself to add more to my investment and understand how thier announcements affect us. I'm here for the stable sizable payouts and payout growth. My current yeild on investment here is 10.6% and with the special shares coming I may pass 11%, which is my already my highest Canadian yeild and one of five regular 10%+ I currently have in my portfolio.