Private and Government are struggling with debt. Low interest rate have allow both private and government debt to grow. The Bank of Canada is looking at hiking interest rates. Many household are over extended when it comes to debt.

1. BY: PAUL YOUNG CPA, CGA
DATE: JULY 5, 2017
Debt – Canada – Analysis – July
2017

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3.  Warning signs have been out for a few years that interest rates would eventually be
hike as part of monetary policies by the Bank of Canada -
http://business.financialpost.com/personal-finance/mortgages-real-estate/mortgage-
rate-hike-looms-as-canadians-continue-to-deal-with-near-record-debt-
levels/wcm/e5818bca-ddbc-45cf-8e89-a89463ba7729. The rate increase likely will be
small, but should set off alarms as ¾ hike or higher could have a huge impact on the
ability of people to handle their current debt levels -
http://news.buzzbuzzhome.com/2017/07/expert-says-one-country-has-bigger-housing-
bubble-than-canada.html
Summary

4. • SME – Financial Performance Management (TM1, Cognos Controller and Cognos Disclosure
Management, OpenPages, Algorithmics, Cognos Integrated Server, Cognos Command Center and
Datawatch)
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing, Business Process
Management, Internal Audit and Controls, Risk Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public Finance and Advance
Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market segment
Paul Young - Bio

5.  What are bond agencies?
 Canada Federal and Provincial Bond Rating
 Manitoba/Credit Rating
 Alberta/Credit Rating
 Ontario/Credit Rating
 Government Net Debt
 Government Interest Cost
Agenda

6. - Source - http://www.investinginbonds.com/learnmore.asp?catid=9&subcatid=94
What are bond agencies
• Agency bonds are issued by two types of entities—1) Government Sponsored Enterprises (GSEs),
usually federally-chartered but privately-owned corporations; and 2) Federal Government agencies
which may issue or guarantee these bonds—to finance activities related to public purposes, such as
increasing home ownership or providing agricultural assistance. Agency bonds are issued in a variety
of structures, coupon rates and maturities.

7.  Rate government debt
 Downgrades can forced up interest costs due to higher return required on bonds
 Debt ceiling can be established
 Many finance minister have said they do not sleep at night due threat of bond downgrade
Bond Agencies

8.  http://www.financialpost.com/markets/data/bonds-canadian.html#provincial
Bond/Value

9.  http://www.cbc.ca/news/canada/manitoba/manitoba-moodys-credit-agency-rating-
1.4018001
MB / Credit Rating

10.  http://business.financialpost.com/news/economy/moodys-dbrs-cast-worried-eye-on-albertas-debt-and-
recovery-hopes-based-on-oil
Alberta / Credit Rating

11.  http://www.cbc.ca/news/canada/toronto/moodys-ontario-credit-rating-stable-1.3554371
Ontario / Credit Rating

12.  RBC – March 16, 2017
Government – Net Debt

13. Government Interest cost
https://www.fraserinstitute.org/sites/default/files/cost-of-
government-debt-in-canada-2016.pdf
Comment:
• Alberta interest is not $800M/year
• Provinces like Ontario/PQ interest
cost is 3rd largest expense
• Government debt has paid back
• Running Surpluses
• Spending cuts
• Selling off assets

14. Global TV – June 28, 2016
CBC – April 22, 2012

15. Source - https://www.iif.com/publication/global-debt-monitor/global-debt-monitor-june-2017
Global Debt

16. Source - http://business.financialpost.com/personal-finance/mortgages-real-estate/mortgage-rate-hike-looms-as-canadians-continue-to-deal-with-near-record-debt-levels/wcm/e5818bca-ddbc-45cf-8e89-a89463ba7729
Canada Household Debt