scarlet: pamela ritchie, thank you so much.berg tv canada anchor joining us from toronto. been there has increasingly a lot of pain in the credit markets. we break it all down, next. ♪ scarlet: plenty of pain in the credit markets with the number of companies defaulting on their debt the highest since the financial crisis. the blackrock ceo told us that the risks in the credit market are continuing to grow. access to the credit market, the assets are incredibly rich, but you are part of the market -- whether it is materials, energy, retail -- where we will see more systematic risk, more defaults going forward. i think when growth continues to be slow, it means second and third tier companies will default more and to some industries, when technology changes, you will see more defaults and that is going up. i have been in the business 30 years now. i have never seen a greater dispersion where you have part of the market that is extremely strong and part of the market were people just do not want to touch it because the risk of de

we are joined by pamela ritchie who joins us from toronto. how did they do that? n is the answer. toronto dominion bank is the second-largest lender in canada coming in with profits that are reliable in terms of beating or meeting estimates. they did not disappoint. the profit grew by 10% and they beat expectations. they did raise their provisions for credit losses but that is less than what some of the estimates had been. rbc raised their provisions by 12%. the bank of montreal raised credit provisions but not by as much, so all of them are concerned about the credit side of things and they have raised divisions but they are not as high as some people thought they would be. loans thate their had soured sore through the quarter, but the banks bringing in profit still in line or within a penny. a couple of dividend races as rbc touched on the wildfires and how that will affect the banks portfolio. they said $1.3 billion worth of mortgages have been even out in the fort mcmurray area. they are assessing how that is going to work out. td says that will be a q3 event.

for more on the headwinds facing the country, we are joined by pamela ritchie in toronto. ildfires and growth? pamela: in terms of the hit to second-quarter gdp, the bank of canada is expecting on an annualized basis 1.25% of a decline to show up because of the damage that has been wrought because of the wildfires. in april, the bank of canada was looking at 1% growth for the second quarter. 0.25% shaved about off that outlook. it is something that will pick up later on. the no policy response needed, meaning they won't have to lower rates to stimulate the economy in a response to this. also in these notes, there's waiting for the federal reserve perhaps. talking to a guest later on our show, robert spector, who says it seems to be a placeholder comment from the bank of canada. alix: you mentioned you didn't need to cut rates because the wildfire issue will be temporary. what kind of bounceback could we see in the third and fourth quarters? don't want actually to look at this from a human tragedy perspective, but net, it looks like the rebuilding will add to gdp and perhaps