Eisman Sees ‘20% Plus’ Drop in Canadian Bank Stocks on Short Call
- ‘Big short’ investor is targeting RBC, CIBC, Laurentian Bank
- Banks aren’t provisioning enough for loan losses, Eisman says
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Steve Eisman, the money manager who foresaw the collapse of the U.S. housing market, is now predicting a “20 percent plus" decline for Canadian bank stocks as credit conditions “normalize” and loan losses jump.
Eisman said that he’s shorting Royal Bank of Canada, the country’s biggest lender, along with Canadian Imperial Bank of Commerce and Laurentian Bank of Canada. In an interview Tuesday with BNN Bloomberg Television, he also said he’s targeting mortgage insurer Genworth MI Canada Inc. and alternative lender Home Capital Group Inc.