The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst
: I had a question with the -- I guess, it seems like a bit of being more disciplined or the pullback within the nonprime residential segment on
originations. Are you seeing your competitors, especially your biggest competitor, doing the same? Or are you kind of, let's call it, willingly ceding
market share?
Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst
: Okay. And then, I mean, if you were to update your credit loss model to only adjust for Moody's forecast as of October, I'm not sure if it's out now.
Just wondering like how would that impact your Q4 loss provision. Essentially I'm just trying to understand the comment in the MD&A around the
timing of potential realization of recoveries of losses if the macro environment matches your assumptions?
Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst
: Okay. And then just my last question is maybe whether or not from Equitable specifically, but just maybe broader activity in the market you're
seeing so far in Q4? Are you seeing the momentum that we saw in the summer carried through into Q4? Are we starting to see cooling, whether
or not it's just some of the pent-up demand is dissipating or just the regular seasonality of being in Q4?
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NOVEMBER 04, 2020 / 1:30PM, EQB.TO - Q3 2020 Equitable Group Inc Earnings Call
Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst
: First off, really appreciate the extra disclosure on the commercial book. Just one follow-up on that. Mixed-use properties. Can you give us a little
bit of description as to what's involved in the mixed-use properties and why those are viewed as lower risk, let's say?
Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst
: Great. Just shifting to the securitization. Gains on sale of securitized loans volumes, obviously, really high, but it looks like the gain on sale margin
is pretty elevated as well, like 2 to 3x higher than what would be a normal run rate. Obviously, spreads have widened here a little bit, but maybe
you can talk about that margin and the sustainability of that margin as well as volumes going forward? Like should we be thinking about gain on
sale as still elevated in future quarters?
Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst
: Okay. That's helpful. The -- just a couple of clarification questions to wrap up then around the TFSA and RRSP. Is that -- that will be released in 2021,
and will it just be a savings product to start? Or when can we expect to see some more "sophisticated products" in those accounts?
Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst
: Okay. And last one is with respect to the covered bond market. Does the access to that market rely on either OSFI or other regulatory approvals
before launching? And are you having discussions with those bodies today that gives you confidence you'll be able to have covered bonds in 2021?
Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst
: So is that the constraining factor then? Is that the -- I believe it's a 5.5% cap right now, but it's been expanded for -- through COVID up to, I think,
10%. Is that what's constraining your ability to tap in to covered bonds? Or is there investor demand? Or maybe explain why we shouldn't see
covered bonds sooner?
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