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: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Just that slide showing the structure of the hedge there. It looked like when you put on the hedge, your -- the goodwill tied to the acquisition is
up by $1.5 billion, that's just going to sit on the balance sheet and then probably around another 20 basis point capital hit from the acquisition.
It's not classified as a credit mark or anything like that, it's just pure goodwill, right?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. So that $1.5 billion increase in goodwill will -- that's going to come back into income over time?
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Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Got it. So it's -- you get the 20 -- is it -- correct me if I'm wrong, it's about a 20 basis point on close, but then you are not back over, I don't know what
the duration of the 2, 3 years, something like that?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Got it. Okay. Just wondering, historically, you've been -- the tractors term has come up with TD and how you invest your liquidity. I'm wondering
what you're doing these days with a flat or inverted yield curve depending on the day? Have you shortened duration of your liquidity management?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: And then I'll just ask a broad question. We saw a lot of NIM expansion this quarter, obviously, in the U.S., Canada as well and top of the house. If
you can give me a sense of -- is this -- is what we saw this quarter sustainable probably for Q4, but beyond that. And things I'm thinking of are
obviously deposit betas, when can that start to eat into NIM expansion.
But I also believe you raised a lot of wholesale funding this past quarter or in the current quarter, I forgot one. But would that be something that
starts to weigh on the margin or dilute a little bit of what we saw this quarter and then over the next few? And why they do raise all that wholesale
funding? Is it like pre-funding some First Horizon stuff? A lot of questions in there, sorry. It will be my line.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Let somebody else add there if you want.
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