Problems linger in Canada’s commercial paper market. On a not so reassuring note, TD’s CEO predicts the commercial paper market will be “going for a ride here for the next three or four months…I think it’s going to be quite ugly.” Unfortunately, that means Canada’s “credit challenged” may be charged higher interest rates, and have fewer product options, for some time to come.
The Financial Post’s Peter Foster reminds us that bailing out commercial paper investors is not the job of government. He notes, doing so “would only encourage them to do it again.”
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“The Bank of Canada won’t match the interest rate cuts by the U.S. Federal Reserve,” says CIBC’s Avery Shenfeld in the Financial Post.
