Bullboard - Stock Discussion Forum Dividend 15 Split Corp T.DFN

Alternate Symbol(s): DFNPF | T.DFN.PR.A | DVSPF

Dividend 15 Split Corp. is a Canada-based mutual fund, which invests primarily in a portfolio of dividend yielding common shares, which includes approximately 15 Canadian companies. It offers two types of shares, including Preferred shares and Class A shares. Its investment objectives with respect to Preferred Shares are to provide holders with fixed cumulative preferential monthly cash... see more

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Dividend 15 Split Corp > Interest rates in Canada likely to head lower.

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Post by mouserman on Nov 30, 2023 9:41am

Interest rates in Canada likely to head lower.

The Financial Post reports in its Thursday, Nov. 30, edition that economist David Rosenberg says the level of household debt is straining the finances of Canadians to the point that it will be impossible for the Bank of Canada to keep interest rates at current levels for long. The Post's Shantae Campbell writes that Mr. Rosenberg said in an interview on Nov. 28, "People think that it's the government debt crisis, (but) no, there is a crisis on Canadian household balance sheets." The president of Rosenberg Research said household financial strain had hit a critical level, estimating that household debt-to-income ratio to be over 170 per cent. Such high ratios, according to Mr. Rosenberg, are unsustainable given the Bank of Canada's current overnight rate of 5 per cent. In May, when the BOC's overnight rate was 4.5 per cent, the Canada Mortgage and Housing Corporation said Canada's elevated household debt levels posed a considerable risk to the economy, making it particularly susceptible to a global economic downturn. Mr. Rosenberg contends that the current high rates are unsustainable for the majority of Canadians. He said the BOC needs to lower rates significantly to avert a severe recession.

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Comment by Tradestay on Nov 30, 2023 11:22am

What he fails to say lower rates is what put Canadian debt this high to begin with. Lowering it only add severity to the future. Don't get me wrong as an investor I am thrilled, but Canadians had low interest rates for too long and the current generation thinks money is always free and cheap.

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Comment by flamingogold on Nov 30, 2023 2:12pm

Rates will never go back to zero where a once in a century pandemic brought them too. Those that borrowed heavily then are most at risk. Any decline will help even if its slow and steady and ends at a terminal rate of 4 over the next year. The worst fears of 1970's stagflation appear to be waning.

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