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Eisman of ‘The Big Short’ Warns Canada Housing Heading for Slump With CIBC Most Exposed

  • Fund manager was featured in Michael Lewis’s ‘The Big Short’
  • New mortgage regulations in Canada will hurt housing prices
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Eisman Sees 'Severe Correction' in Canadian Housing

Canada’s housing market is “ripe for a pretty severe correction” with Canadian Imperial Bank of Commerce the most vulnerable, according to Steve Eisman, a fund manager at Neuberger Berman Group LLC.

While Canada’s subprime mortgage market is much smaller than in the U.S., real estate prices in the country have risen more, said Eisman, who was featured in Michael Lewis’s book “The Big Short.” Regulations that Canadian authorities are putting in place will have a negative effect on mortgage volume next year which will translate into lower prices.