Concern over the exposure of Canada’s banks to the housing market is prompting some investors to switch their funds to insurance companies instead.
Reuters reports that banking stocks are becoming less favourable for investors who have weighed the recent slowdown in the housing market in Toronto.
"Once Toronto started getting hit I think the housing fears became much more front-of-mind for a lot of people,” Ian Scott, equity analyst at Manulife Asset Management told Reuters.
Along with tighter lending criteria, rising interest rates and measures to slow heated Canadian housing markets, investors have also been concerned about the banking sector following the Home Capital Group issues.
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