Credit-Card Debt of Canadians Finds Eager U.S. Buyers

The video discusses the trend of Canadian banks issuing credit card backed bonds in the US market due to lower borrowing costs compared to Canada. It highlights the enthusiasm of American investors for these securities despite rising consumer indebtedness and default rates. The video compares credit card payment rates between Canada and the US, showing Canadians as more reliable payers. It also identifies Toronto Dominion Bank and Bank of Nova Scotia as leaders in this trend, with expectations of increased supply in the future. The impact of these borrowing costs on consumer credit card rates is also explored.

Why are Canadian banks opting to issue credit card-backed bonds in the US market?

• To access a larger pool of investors

• To benefit from lower borrowing costs

• To diversify their investment portfolio

• To comply with Canadian regulations

What is the main reason US investors are attracted to Canadian credit card-backed bonds?

• Better credit ratings

• Lower default rates

• Increased consumer indebtedness

• Higher interest rates

How do Canadian credit card payment rates compare to those in the US?

• They are significantly lower

• They are about the same

• They are significantly higher

• They fluctuate more

Which Canadian banks are leading the trend of issuing US dollar bonds?

• Toronto Dominion Bank and Bank of Nova Scotia

• Bank of Montreal and National Bank

• Royal Bank of Canada and CIBC

• HSBC Canada and Laurentian Bank

Do the cost savings from cheaper borrowing by banks directly affect consumer credit card interest rates?

• Yes, they are directly passed on

• No, they are unrelated

• Yes, but only partially

• No, they only affect corporate loans