Canadian covered bond issuers to turn on the taps

By Bill Thornhill
27 Oct 2020

Bankers are confident that Canadian covered bond issuance will resume after the Bank of Canada withdrew the repo eligibility of retained covered bonds, while honouring existing repo deals. But bankers are split as to whether supply will restart this year or be deferred until next year.

On October 15 the Bank of Canada announced that it would no longer provide funding for covered bonds retained by issuers on their balance sheet for repo purposes. 

Although retained covered bonds are no longer eligible for new term repos, those already pledged will continue to provide funding until ...

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