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Mortgage Broker News | 29 Apr 2015, 07:24 AM Agree 0
Canada’s largest non-bank mortgage lender posted its quarterly results on Tuesday and the figures show gains in its home loan book.
  • John Martin | 29 Apr 2015, 08:38 AM Agree 0
    How does one have a net loss of 3.5 million dollars with the numbers they have posted. Some fancy accounting going on there. Some what border line ridicules.
  • Other Dave | 29 Apr 2015, 09:14 AM Agree 0
    How did they have a loss? Sounds very shady....
  • Ron Butler | 29 Apr 2015, 10:41 AM Agree 0
    John and Dave...... big monolines use hedging to manage their books, they cover both sides of rates up and down. Normally this simply affords safety and aims to provide additional profit to the company. Unexpected movements in Prime or big fluctuations in the bond market impact on those hedges negatively. As one executive said: up is okay and down is okay but unexpected changes suck, volatility costs millions.

    So nothing was shady, it all makes sense. There is a reason that the biggest bond trader on Earth at PIMCO stopped handling GOC bonds he lost too much money when Prime rate changed.
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