As pundits debate whether the economy will glide in like a feather on a gentle breeze or plummet like Canadians' savings balances, Moody's threw markets a curveball Tuesday.
The ratings agency downgraded a slew of U.S. mid-size banks. Its reasons included rising funding costs, tightened lending, declining earnings, interest rate risk, potential regulatory capital constraints, commercial real estate exposure, collateral risk, and deposit risk—take your pick.
This is the latest misfortune for non-money center banks, who've taken it on the chin. But what does this financial wrinkle have to do with Canadian mortgage rates?