Canada's Covered Bonds Boom as Europe Seeks Yield

The video discusses the high demand for bonds in Europe, driven by the European Central Bank's (ECB) bond-buying program. This demand has led to a scarcity of highly rated credits for institutional investors. The video also highlights the risks associated with issuing large amounts of debt, especially in light of potential housing market declines in Toronto and Vancouver. Fitch Ratings has accounted for a possible 25% drop in the housing market in their analysis. The structuring of bonds by banks, which includes pooling non-insured loans and removing delinquent loans, is also covered. The video concludes with insights from analysts on these trends.

What is driving the European demand for bonds according to the text?

How does the European Central Bank's bond buying program affect institutional investors?

What risks are associated with issuing a large amount of debt in the current market?

What did Fitch Ratings analysts anticipate regarding the housing market?

How are the bonds structured by the banks mentioned in the text?