Paul Holden: Alright. Okay. Thank you. I will leave it there.
Operator: Thank you. The next question is from Doug Young from Desjardins Bank Capital Markets. Please go ahead. Your line is open.
Doug Young: Hi. Good afternoon. Just on Page 16, I think it is in Wholesale Banking. Looking at expense growth, I guess this is for Riaz. There was mention of investing in the U.S. dollar strategy. And I just find that a little interesting, in light of the fact that you are in the midst of closing the Cowen transaction. So, can you kind of help me understand what that relates to? Because I would have thought you would have waited to make further investments or at least stop investments in the U.S. strategy until you onboarded Cowen, but maybe I am thinking about this incorrectly?
Riaz Ahmed: No, Doug, not at all. The €“ you have to remember that the U.S. dollar strategy has been unfolding for a while now, and then the acquisition of Cowen was announced at the beginning of August. So, a fair bit of that is just the increased run rate that was put on prior to the acquisition being announced. And there is a fairly robust hiring of front office individuals, both in investment banking, global markets and the related support individuals as well as technology professionals. So, it’s mostly just the annualization of the build that had taken place prior to.
Doug Young: So, this is year-over-year, and I guess this has already been done? It’s not used incrementally more sequentially, this was already in the running? And I guess because you are doing this, I mean is there a risk that we are going to have a restructuring charge of some form as you onboard Cowen?
Riaz Ahmed: Well, I think as you know, a lot of the verticals where Cowen is strong as compared to where TD Securities is strong, there is not a lot of overlap. So, I think that we would look to usually manage our expenses in the normal course. But as you know, when we acquired Cowen, we didn’t announce any particular synergies from an expense perspective.
Doug Young: Okay. And then just last, Kelvin, it looked like in corporate, it was a lower adjusted loss than normal. I mean there is lots going into the underlying items, so I get that. But is there anything unusual in there? Should we expect the loss to kind of go back to more of a normal loss level, if you can unpack that?
Kelvin Tran: Sure. So, this quarter, we benefited from lower tax rates. And if you quantify that, it’s about $170 million of an impact.
Doug Young: And that related to anything in particular or?
Kelvin Tran: It’s just business mix and unused tax losses. So, you have these items that bounce around quarter-over-quarter. Sometimes they are positive, sometimes they are negative. In this quarter, the items just happens to be larger and of that magnitude.
Doug Young: Okay. I will leave with that. Thank you.
Operator: Thank you. The next question is from Lemar Persaud from Cormark Securities. Please go ahead. Your line is open.
Lemar Persaud: Thanks. Just looking at your sensitivity to higher interest rates, and it looks like it’s still relatively high, I think $1.2 billion increasing that for a 100 basis point increase in rates across the curve. And I think that number is $1.3 billion last quarter. So, did I hear you right in that higher deposit betas are going to limit in the upside? And if so, why isn’t that showing up in this rate sensitivity table more meaningfully, or are rising deposit betas simply not considered in this sensitivity?
Kelvin Tran: Hi. It’s Kelvin. I will take that question. Betas are taken into account in that model. And as a matter of fact, some of the reduction in NIS quarter-over-quarter is due to the higher beta. As rates rise, then you have less sensitive to the next rate hike. But in that number, there are a lot of things that happened. There are also hedges that expires and so that would add sensitivity to it, but it is in there.
Lemar Persaud: Okay. Thanks. And then one thing that stuck out to me was the 5% sequential mortgage growth in the U.S. Can you help me reconcile what’s driving such strong growth when we are seeing volumes slowing across the industry? And then maybe talk about mortgage spreads in the U.S. Would it be fair to suggest that spreads are tightening there and maybe it’s less of a concern for TD just given the excess deposit position? Is that kind of the right way to think about why you guys are putting up such strong mortgage growth in the U.S.?
