MLN NewsStream

Rental and commercial boutique lender Glasslake Funding just made a push into Alberta and B.C. We caught up with Glasslake President and former Home Trust Underwriting EVP Mike Forshee to check on the opportunities he's prospecting out there.

He tells us, "We will continue to go into secondary markets in the western provinces" for one simple reason. The risk profile in B.C. and Alberta are "very similar" to Ontario, where Glasslake is based.

One offering he sees consistent demand for is AirBNB financing. "We are seeing a real opportunity in Alberta for this product," Forshee says. "Given the values in Alberta are lower than in the GTA and Vancouver..."

It was a double-header for jobs numbers Friday, and the bond market was on the edge of its seat, hoping for signs of a downshifting economy.

What we got were two semi-promising reports but with more gaps than a teenager's text message.

Of course, the compass for rate direction depends on how traders interpret the data's mixed messages. So, grab some crackers and let's dig into it...

First National, a top 5 player in the broker market, recently put a new spin on its rental property underwriting guidelines, adding a touch more flexibility.

In a time when so many investors have gone into hibernation, however, the move may seem curious to some. Intrigued by this shift, we connected with First National's Senior Vice President, Scott McKenzie, to understand the logic behind the change.

Here's how he explained it.

BMO's highly anticipated re-entry into the broker market is more than just a headline – it's a robust "vote of confidence in the broker channel" declared BMO Capital Markets analyst Étienne Ricard today.

On First National's conference call today, Ricard questioned CEO Jason Ellis about it, asking, "What do the banks value most in the broker channel that is more challenging to replicate in more traditional distribution channels?"

American politicians didn't take budget stewardship seriously enough.

This is what happens.

A second Big 3 credit rating agency, Fitch, has chopped U.S. sovereign debt to AA+ from AAA. The firm cites runaway deficits and "expected fiscal deterioration over the next three years" as reasons.

By Fitch's definition, the U.S. now has a "very strong capacity" to pay its debts instead of an "exceptionally strong capacity."

Moody's is the only top agency maintaining a triple-A rating on long-term U.S. federal debt.

Counterintuitive mortgage rate impact

This unfortunate news for U.S. sovereign credit comes on top of much higher expected Treasury issuance—another bearish factor for bonds.