Posted on 03/01/2017 6:59:43 PM PST by ameribbean expat
So what exactly are Panda Bonds?
They’re bonds created by the B.C. government, but sold exclusively inside the Chinese market, in Chinese Yuan (as opposed to Canadian dollars).
This year B.C. became the first jurisdiction in the world to issue them, selling more than $665 million worth.
(snip)
an investor could theoretically pay Chinese Yuan for a Panda Bond, then take that bond to a Canadian bank and offer it up as collateral.
“Then a Canadian bank will say “oh, look at this asset you have, instead of Yuan, which I can’t accept and you’re not allowed to bring into Canada ideally, now you’ve got a Canadian denominated asset that’s totally safe, I’ll lend you money against that and against that, and against the house, and you can sort of leverage the panda bond you own to buy assets in Vancouver.”
(Excerpt) Read more at cknw.com ...
Baja California? British Columbia?
British Columbia. Vancouver real estate market.
Really difficult to figure out: it says CanaDUH in the excerpt.
Not to mention how much it will cause the municipal taxes to rise and force Canadians to sell their home.
It will end in tears.
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