Debt repudiation

Banks in Canada are starting to feel the pain of deteriorating credit quality, just weeks after we reportedthat insolvency filings had skyrocketed in almost all Canadian provinces. Toronto-Dominion Bank and Canadian Imperial Bank of Canada both just posted ugly first quarter results that included higher provisions for loan losses as a key contributor to missing analyst expectations. TD Bank saw its provision for loan losses move to C$850 million, which was up 23% from the year prior. It also marked the highest level for such provisions in at least two years, mainly split between the bank's U.S. and Canadian retail divisions (36% each), followed by the bank's corporate division. 

Canada is in a bit of a recession. Seems to be hitting all regions, all at once.