MCAN Mortgage Corp T.MKP

Interest Squeeze Risk

[cynic7206]

JayBanks,

I been reviewing the risks to MKP.  They have be operating in declining interest or low interest environmnet for the last 10 years.  If the predications are true, we could see interest rates increase up 2 points in the 12-18 months.   In this environment, the spread on the yields would likely be erroded as interest rates increase.  The new term deposits would all need to reflect higher interests and there could be drop in mortgage activity due to higher interest rates.  I see that mortgage turnover relatively quickly but have you seen anything that would show impact on profit under interest rate increase scenarios?

[JayBanks]

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