FFH positions against Canadian banks

[Londoner]

Good Morning,

 

This is my first post on this forum.  i aplogize if my question has already been asked. 

 

Has FFH made any specific investments aimed at taking advantage of a declining Canadian housing market? 

[Uccmal]

I doubt it.  Canadian banks wont be overly affected should such an event occur.  I have my own theories about Cdn housing.  The Prevailing thinking seems to be that real estate in Canada is overpriced.  I dont agree.  The stats are overwhelmed by Toronto and Vancouver.  These two cities are fairly to cheaply priced if you compare them to other international cities such as Manhattan, Tokyo, London. Paris, etc.  If Toronto prices start to rise to even 40% of Mahnattan I will get real worried. 

 

Also, From personal experience the big 5 banks are pretty tight with their UW.  The largest non-bank mortgagor is First National and they are also tight underwriters.  The fringe underwriters got killed in 2008/2009. 

 

Incidentally, unless things have changed dramatically FFH is a large shareholder in number 7: Canadian Western Bank.  Who says Prem doesn't invest in energy :-).