COMMERCE 4PA3 Case 7: Hyperion Aurora Trust - All Answers are Correct
Case 7: Hyperion Aurora Trust What factors are driving the changes in the mutual fund industry? Bank Act change in late 1980s allowed CIBC to enter mutual fund industry Interest rates were very high because of high inflation Regulation after great depression limited rates banks could pay Savers began to invest in unregulated mutual funds because they offered higher rates Rate banks could pay on deposits was max 5.25% but T-bill was offering 12% Banks were at disadvantage in attracting deposits Disintermediation meant funds flowed out of banks What is the industry structure?
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case 7 hyperion aurora trust