Six Canadian Banks Cut by Moody's on Consumers' Debt Burden

Bloomberg ------- Canada’s dollar and bank bonds declined after Moody’s Investors Service downgraded the nation’s banks for the first time in more than four years, signalling that soaring household debt combined with runaway housing prices leave the lenders more vulnerable to losses. Spreads on Canadian bank debt were modestly wider after the ratings firm lowered the long-term debt and deposit ratings one level on Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada Wednesday. Deposit notes were expected to open 3 basis points to 5 basis points wider and non-viability contingent capital bonds were expected to begin trading 5 basis points to 8 basis points wider, Mark Wisniewski, a credit hedge-fund manager for Sprott Asset Management LP, said by phone from Toronto. To learn more click on the picture below to read the article.