Foreign Surrender

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At $31 billion worth of bonds, sold mainly in euros, British pounds and U.S. dollars, 2015 has already seen Canadian banks sell a record amount of covered bonds to finance mortgage lending, according to Fitch.

Canada’s euro-denominated covered bonds’ 0.6 per cent return makes them the best​ performers in the world this year for the segment, trailing only those from Italy, Portugal and Spain, economies only starting to emerge from the worst of the eurozone debt crisis, according to Bank of America Merrill Lynch data.

Canadian Mortgage Backed Securities Under Pressure
Short interest in the eight-company Standard & Poor’s/TSX Commercial Banks Index (CAD) has climbed to the highest this year according to Bloomberg as reported by The Financial Post September 11, 2015

The reach for yield is not very high according to the quote (left) from Bank of America Merrill Lynch.

Clearly, Europeans thought a 0.6% yield is the same as a flight to quality.

I wonder what the closer was? Canada is a safe haven or real estate is a safe haven.​

Meanwhile the S&P TSX Commercial Bank Index (^TXDE) has plunged 47% since it peaked a year ago and there does not appear to be any support as the highs and lows get lower.

Former Federal Reserve Chairman Alan Greenspan
"Pending Bond Market Bubble" Aug 10, 2015 

FALLING PRODUCTIVITY WHY?
"Capital Investment has been inadequate"
Same thing in Canada