Bank of Montreal Q2 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Yes. First question is on credit. And at first glance, it looks like the provision number in the U.S. particularly is too low relative to the level of formations you had this quarter. But if I peel it back a bit, I reverse that credit recovery and I don't look at the -- and I exclude the oil and gas formations where you say you're not going to give a loss out, I guess to about a 30%, I guess loss rate on the remaining loan. Does that kind of how you look at it possibly? And underlying that question as well given that formations were still high in the U.S., are you seeing any fallout from trade issues in the U.S. trade wars because you did see some ag and wholesale trade formations? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 29, 2019 / 12:00PM, BMO.TO - Q2 2019 Bank of Montreal Earnings Call

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. That's a very thorough response. Then my next question is on trading. It seems like over the past few quarters, something magical happens at quarter end and you have a big spike in trading revenues, and this quarter was particularly strong. Can you help me understand the influence of how U.S. trading book is structured and maybe some of those fair-value adjustments that take place?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. And just the last to sneak it in. Do you have any -- and Tom, perhaps you can answer it. The flat yield curve, is that creating any headwinds in your corporate segment in the liquidity portfolio?