The Financial Times reports that “Pimco goes bearish on Canada” (Pimco goes bearish on Canada, FT, p. 16, March 3, 2014). The article reported that the Pimco Total Return Fund had reduced its holdings of Canadian debt by about 50% due to its concerns about housing prices in Canada. Pimco is reported to be expecting a decline in housing activity and prices this year due to tightening of mortgage credit and an increase in loan rates. The decline in prices is expected to be as much as 30% over the next two to five years, so a gradual decline over several years rather than an abrupt market fall. Other reports express a concern about the high levels of consumer indebtedness in Canada and the rapid rise in housing prices.