Canada

Four public sector borrowers received strong receptions in the primary US dollar market this week, with a lack of supply in the currency over the last few weeks overriding volatility in US Treasuries.

The Inter-American Development Bank and the Province of British Columbia sold well subscribed dollar deals on Tuesday but volatility could be on the radar after US inflation data beat expectations.

Two SSA borrowers announced on Monday that they were preparing to enter the dollar market on Tuesday, hoping for a calmer picture in the underlying rates market than was in evidence last week.

Banks that have access to diverse pockets of demand will be far better equipped to deal with any contraction in central bank liquidity, which could occur if high inflation spooks policy makers and markets.

Canadian Imperial Bank of Commerce achieved a roaring success with its $2bn five year 144A deal priced on Wednesday, the first from a Canadian bank in over a year. CIBC managed to achieve a size and spread that would not have been possible in euros and showed the importance of paying attention to key currency markets outside Europe.

Canadian Imperial Bank of Commerce revealed the mandate on Monday for the first Canadian dollar covered bond of the year and the first to be issued in 144A format in over 12 months. Prospects for further issuance in the currency are promising.

The dollar market this week was limited to just a few small trades, thanks primarily to a sudden lurch in rates provoked by last week’s Federal Open Market Committee meeting in the US.

Canada’s federal pensions manager, Public Sector Pension Investments, made its debut on the international bond market on Tuesday — and will soon be back for more. It was joined in the market by International Finance Corporation’s first ever bond linked to the Secured Overnight Financing Rate (Sofr).

The Federal Reserve made a hawkish lurch at its meeting last week and the consequences are still rippling through rates markets with just two SSA borrowers attempting deals in what could prove volatile markets.

Canadian telecommunications company Telus is set to print the nation’s first sustainability-linked bond, after launching its framework earlier this week. Fellow Canadian Enbridge could join Telus: the oil pipeline operator published its SLB framework on Thursday.

A pair of globally systematically important banks (G-SIBs) made rare visits to niche bond markets to raise senior debt at a group level this week, including a Canadian dollar market that is enjoying its busiest year for offshore financials since 2007.

The sterling covered bond market exploded into life this week as three transactions worth more than £3bn priced in three days, increasing this year’s issuance by 150%, and boosting hopes that more deals will follow.