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(CEP News) Ottawa - Canada Mortgage and Housing Corporation (CMHC) has purchased its first batch of mortgage-backed securities from Canadian financial institutions under a federal program, designed to increase liquidity in Canadian credit markets.
The $5 billion in securities will give CMHC an average yield of 4.241% and have a maturity date of Oct. 15, 2013. CMHC described the mortgages involved as high-quality assets that are already guaranteed through government-backed mortgage insurance. The corporation announced last week that it will purchase up to $25 billion in insured mortgage pools as part of the government of Canada's plan to maintain the availability of longer-term credit in Canada. The selection process for the mortgage pools purchased today was done through a competitive auction that required a minimum yield rate of 3.925%. The high yield offered was 4.679%. By Geoff Matthews,
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, edited by Sarah Sussman,
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