Canadian banks are again on top of the world, but it’s not because we’re financial wizards—we just look good compared to everyone else.
Bloomberg reports that RBC and Scotiabank-issued bonds are outperforming those of their U.S. counterparts, attracting foreign investment in the wake of the European debt crisis. RBC bonds dropped only 0.01% between April and May 11, while Scotiabank bonds dropped 0.09. Compare that to bonds issued by New York-based Citigroup, which dropped 1.4%, or Goldman Sachs, which lost 1.7%.
The good news extends to the housing market too. Despite recent concerns about Canadians’ high personal debt and rising interest rates, Sal Guatieri, a senior economist at BMO Capital Markets, told Bloomberg that “mortgage rates are still near historical lows and this, combined with an expected cooling in house prices, will help support affordability for Canadians.”