Canadians can: BMO and TD grab euro covered bond funding while they can

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By Bill Thornhill
19 Mar 2020

In a sign of the strength of the Canadian banking sector, Bank of Montreal and Toronto Dominion Bank were able to access the euro covered bond market in good size on Thursday with deals that provided a substantial saving compared to senior unsecured issuance. The deals followed a series of measures to ease liquidity from the Bank of Canada, including widening repo' eligibility to covered bonds.

Bank of Montreal opened order books on Thursday for a three year euro benchmark with guidance of “45bp (the number)” over mid-swaps. The decision set specific level on guidance with an intention to print at the same spread provided very clear price transparency and showed a strong willingness ...

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