So, all of those factors go into that forecast. And so, if there’s a cut, you see our disclosures around interest rate sensitivity, that does over time add up. But if you talk about a — we have 100 basis points is around $300 million to the negative. If you talk about one cut over the short term, it’s pretty immaterial. It might be sort of low single-digit basis points over time, and then it will spool up after that.
Gabriel Dechaine : But those hedges don’t work the other way? I thought that was the
Hratch Panossian: They do help. They do help. That’s why you don’t feel as much of it right up front, right? Remember, part of our exposure is to short-term rates. And so when you see the actual cut and the front end of the curve declines, you feel some of that right away. And then where the hedges come in is the fact that you don’t feel 100% of that. And so generally, right around 60% of our exposure right upside, downside has been too long rates. And so that takes several years to price in, but you’ll feel some portion of it right away.
Gabriel Dechaine: Okay. I don’t typically ask trading questions because, I mean, it’s — people don’t usually like to give up the secret sauce, but this is a massive trading number, especially in rates. Just wondering what happened this quarter that was particularly beneficial? And it’s a — asset line item that fluctuates a lot. So could we see a similar number sustained or not? And then kind of tying into the capital question, VAR was up, but market risk weighted assets were down. Is there the composition of your trading yield of that result? Or why didn’t the risk-weighted assets go up in that category?
Harry Culham: Good morning. It’s Harry here again. I’ll take that. Yes. So indeed, it was a very strong quarter really across the platform. I talked about DFS a moment ago. So what’s happening here is we’re focusing on executing on the strategy we’ve laid out for a number of years, and the investments in our platform are really allowing us to deliver results in the most difficult of times for our clients or the most challenging times. And I would say that this is a very well-diversified client franchise. You’re seeing delivering of outsized returns. We are maintaining and growing our market share with our core Canadian clients from a trading perspective and really from a corporate investment banking perspective. And we’re growing our U.S. platform, as we’ve talked about in the areas of relative and competitive advantage, and Victor alluded to some of that earlier, targeting growth in north of 10% there.
All that comes together with our connectivity with the rest of our bank as we deliver capital market solutions to all of our clients. The results were very strong. The trading environment was, I would say, exceptional. We continue to execute on that strategy. So the quarter was particularly strong. We expect the results to be in line going forward with what we outlined at Investor Day, which is a growth of around 7% to 10% a year across the capital markets platform. We’re pretty confident in those numbers is that helpful. In terms of the VAR and the usage, Hratch talked a little bit earlier about counterparty credit risk and so on. What I would say is we deploy risk to our clients. And so we don’t have stand-alone proprietary operations. The VAR is devoted to our client activity, and that continues.
Our clients are very active at this point in time.
Gabriel Dechaine: No, I get the VAR going up, activity goes up. It just back in analyst school, I learned that, that usually causes RWAs to go up, but that’s fine. Thanks.
Operator: The next question is from Lemar Persaud from Cormark Securities. Please go ahead.
