Q: Hi Team,
Is the jump in GSY shares related to the federal budget release? I heard that they left lending cap at 35%? Wondering if this was an overhang that has been lifted for the name?
Is the jump in GSY shares related to the federal budget release? I heard that they left lending cap at 35%? Wondering if this was an overhang that has been lifted for the name?
5i Research Answer:
The 35% rate did not change. While it 'may' have provided some relief, we do not realy think investors expected this to decline further. At some point, lower rates would put several companies out of business and push consumers towards less-savoury options. We would equate most of the move to the CIBC upgrade.