To refresh someone's memory if you forgot or unknew the past, this is not 1st-time hedge fund managers have short Canadian banks. The reason was our red-hot housing market which they think our economy won't sustain. See quoted below:
1) A fund manager made famous by the book The Big Short has refocused his sights on Canada, betting that a tottering housing market and a sluggish economy will bring trouble for the country’s biggest banks--FT reported on March 21, 2019. He also went to CNBC to talk about why he was shorting the Canadian banks.
“I’m calling for a simple normalization of credit that hasn’t happened in 20 years,” Mr. Eisman, came across in the book and movie of Big Short told the FT while declining to name the banks he is shorting or the full extent of his positions. “This is not ‘The Big Short: Canada’ — I’m not calling for a housing collapse,” he said.
Mr. Eisman is not alone: collective wagers against Canadian banks have risen 19% since the start of the year to positions worth US$12.3bn, according to S3 Partners, a data provider based in New York.
2) Short-sellers were up almost $2.61 billion, or 26.32% mark-to-market, from March 1 to Tuesday morning--Published Apr 09, 2020
The root of causing the collapse of the US housing market in 2008 was subprime mortgages. The mortgage bonds derivatives, Warrant Buffett called " the weapon of mass destruction", CDO or synthetic CDO actually was the last straw to break the back of the camel of the American housing market in 2008.
PS: some shorter is just making money by shorting the stock to a certain extent and then going to another target. It is not necessary for them to bring the business down.
1) A fund manager made famous by the book The Big Short has refocused his sights on Canada, betting that a tottering housing market and a sluggish economy will bring trouble for the country’s biggest banks--FT reported on March 21, 2019. He also went to CNBC to talk about why he was shorting the Canadian banks.
“I’m calling for a simple normalization of credit that hasn’t happened in 20 years,” Mr. Eisman, came across in the book and movie of Big Short told the FT while declining to name the banks he is shorting or the full extent of his positions. “This is not ‘The Big Short: Canada’ — I’m not calling for a housing collapse,” he said.
Mr. Eisman is not alone: collective wagers against Canadian banks have risen 19% since the start of the year to positions worth US$12.3bn, according to S3 Partners, a data provider based in New York.
2) Short-sellers were up almost $2.61 billion, or 26.32% mark-to-market, from March 1 to Tuesday morning--Published Apr 09, 2020
The root of causing the collapse of the US housing market in 2008 was subprime mortgages. The mortgage bonds derivatives, Warrant Buffett called " the weapon of mass destruction", CDO or synthetic CDO actually was the last straw to break the back of the camel of the American housing market in 2008.
PS: some shorter is just making money by shorting the stock to a certain extent and then going to another target. It is not necessary for them to bring the business down.
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