There has been a lot of discussion in recent months about the potential for a material decline in Canadian home prices and the possible fallout for Canadian financials, and the banks, in particular. The speculated financial services sector impact – should such a decline occur – has ranged from: (i) slower economic growth causing slower revenue/earnings growth (most likely), to (ii) a credit downturn (a possibility), or worse, (iii) some sort of systemic event (extraordinarily unlikely, in our view). Click to Download»