Royal Bank of Canada T.RY

Scratching my head...

[Dibah420]

Not much action on this board except for the lugubrious lament from prohibitionist.
All my reporting banks have have spiked  BMO, BNS, NA and tagging along are the ones yet to report  TD, CM.
But RY opened in the red this morning despite what seemed like a good report.  Haven't had the time to dig into it yet as I had to go into town for some chores.
Anyone has any idea?

[DeanEdmonton]

It has since recovered nicely. I think that despite the stellar earnings there was a knee jerk reaction to the mortgage book having climbed over 300 billion and up over 30 billion in hte last few quarters. Still a bunch oof people that think the housing market in Canada is going to tank like it did in the states. Only way that would happen is if rates went to 9% and if that happens we have MUCH

[Dibah420]

Thanks DeanEdmonton.  At least it is ending the session in the green.

[Dibah420]

Well I was wrong.  Ended down  0.29.  Question is which way will CM and TD trend tomorrow?  They have already shot up in recent sessions. Haven't paid much attention to mortgages lately mainly because haven't had one since the seventies.  Remember mine was with Royal Trust @  11.75%  which was deemed a steal in those days.  Two weeks after I bought

[Dibah420]

****************************************************************************** Agreed.  In Canada if a mortgage defaults it is always the client who is wiped out and seldom the bank, no matter the interest rates. The contract is so one-sided that the bank can sell the property for pennies on the dollar and still recoup its principal, interest and all kinds of bloated and arbitrary penalties

[DeanEdmonton]

You clearly don't understand Canadian foreclosure law. What you have posted is closer to accurate in the States. In Canada a bank has to get judicial approval to sell a property and must support the sale price with at least two appraissals. In addition, if there is equity post sale, which RARELY happens or the owner would have sold the property themselves, that gets returned to the borrower