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JPMorgan Chase & Co. (JPM)
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McDonald's Corporation (MCD)
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Intact Financial Corporation (IFC)
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EQB Inc. (EQB)
Q: Hi group in view of upcoming mortgage renewals over the next 2 yrs. Do you see an increase in chip reverse mortgages which in turn should fuel growth in EQB " any idea how much of their business is in reverse mortgage's. In addition apparently lots of people cancelling or restructuring their house insurance what you thoughts and does an entry point make sense in IFC .
Also is JPM the way to play us banks or do you see something different What's your thought's on Financials overall going fwd. I am very light in the sector (1%) so can you make some recommendations
thanks for your help with this
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Also is JPM the way to play us banks or do you see something different What's your thought's on Financials overall going fwd. I am very light in the sector (1%) so can you make some recommendations
thanks for your help with this
.
5i Research Answer:
With a decline in rates, we would expect activity for reverse mortgages to increase, particularly if housing prices increase.
Its reverse mortgage business is growing fast, and it represents roughly 3% of its total loans.
We continue to like IFC as one of the leading P&C insurers in Canada, and feel that it can continue to perform well in the coming years.
JPM is one of the largest and strongest banks in the US, and we would be comfortable owning it here. We think financials can perform well in the coming years if rates decline, the capital markets continue to run higher, and borrowing improves.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in JPM.