TD follows BNS into dollar covereds as spread outlook questioned

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By Bill Thornhill
27 Mar 2020

Toronto Dominion Bank attracted a slightly larger order book for its three year dollar covered bond on Friday than Bank of Nova Scotia did for a similar deal issued on Wednesday. Both deals offered a considerable pick-up to where they would have been expected to be priced in euros, but the overall spread outlook remains a subject for hot debate. At the same time on Friday, Canadian Imperial Bank of Commerce was set to issue a ‘blow out’ three year Swiss franc deal.

TD opened books on Friday with initial guidance of 100bp over mid-swaps for a three year dollar covered bond, through joint leads Credit Suisse, Toronto Dominion and UBS. 

After two hours orders exceeded $1bn and by midday, when the spread was set at 100bp, the order book had reached ...

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