CANADAThe NextHousing Bubble

“What you have to do is protect yourself from the worst”Anthony Scilipoti. Chief Executive of Veritas.(Canada´s largest independent equity research firm)

Presented by Daniel Rivas

CANADA / EE.UU AVERAGE HOME PRICES

Property pricesraisingforthe past17 years due to….

3 FACTORS

Waves of inmigration

Lax controlsin foreign

money

Low interestrates

“I expect a drop in prices of 20 to 40 percent over the next five

years, perhaps more, dependingon the pace of income growth over

that period”

“Everyone agrees it´s a bubble; now the question is, how it ends”

Source: Financial Times (28 August 2017)

David MadaniFormer Bank of Canada official

How couldwemakeprofitsof this situation?

DERIVATIVES

OPTIONS AND FUTURES

DERIVATIVES

OPTIONS AND FUTURES

Bibliography

• Bank of Canada. (2012). Intervention in the Foreign Exchange Market. 2017, Bank of Canada web page: http://www.bankofcanada.ca/wp-content/uploads/2010/11/intervention_foreign_exchange.pdf

• Ben Mclannahan. (2017). Slowing housing market strains Canada´s lenders. Financial Times, 14.

• Creastats.crea.ca. (2017). National Statistics. [online] Available at: http://creastats.crea.ca/natl/index.html [Accessed 11 Sep. 2017].

• Financial Post. (2016). Housing crash in Canada could cost mortgage lenders almost $12 billion, Moody’s warns. [online] Available at: http://business.financialpost.com/news/economy/housing-crash-in-canada-could-cost-mortgage-lenders-almost-12-billion-moodys-warns [Accessed 11 Sep. 2017].

• Guide, G. (2017). The amazing Canadian boom - house prices are surging!. [online] Global Property Guide. Available at: https://www.globalpropertyguide.com/North-America/Canada/Price-History [Accessed 11 Sep. 2017].

Thank youforyour time

Q&A