BNS breaks into single digits as more Canadian supply looms

By Bill Thornhill
27 Mar 2014

Bank of Nova Scotia’s inaugural legislative covered bond, issued this week, is unlikely to offer much performance and is not eligible for bank liquidity buffers, but it offered genuine diversification to a hungry market. At 9bp the deal was priced on the tight side of expectations with little scope for performance.

Long gone are the days when issuers felt compelled to price inaugural deals with a few extra basis points of premium. The net negative supply picture in covered bonds twinned with the surfeit of central bank liquidity means that investors really only have one chance to grab paper ...

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