Canada

The Province of Ontario is readying for a tap its 2025 Canadian dollar denominated green bond for the second time this year.

The Fédération des caisses Desjardins du Québec (FCDQ) on Monday mandated leads for a euro covered bond, its second appearance in euros since January and its third overall in covered bonds.

A pair of public sector borrowers hit the dollar market this week, pulling off strong deals at three and five years. Both enjoyed a clear field as euro-based borrowers stuck to their home currency thanks to an unpalatable basis swap rate.

The Province of Alberta has announced a five year dollar benchmark, hitting screens with initial price thoughts for the borrower's second dollar benchmark of 2019.

The Province of Alberta has announced its financing requirements for the next few years, which will be met with benchmarks in a range of currencies, medium term notes and structured issues.

Guarantor: CPP Investment Board

CPPIB Capital raised $1bn with a 10 year bond this week but despite the deal securing the issuer’s lowest ever funding cost at that tenor, bankers were unimpressed by the level of demand, adding to claims that demand for 10 year paper is waning.

CPPIB Capital underwhelmed with its return to the 10 year dollar market on Tuesday, giving further evidence of slowing demand following a string of trades in this part of the curve in recent weeks.

Royal Bank of Canada was able to raise £400m of senior funding as though it was on 'autopilot' in the sterling market this week. It is the third Canadian issuer in a month to seek funding in this currency counting as total loss-absorbing capacity (TLAC).

CPPIB Capital has begun marketing its first 10 year dollar bond in two years as it looks to become the latest public sector borrower to visit this part of the curve, despite the underwhelming demand for World Bank’s trade last week.

Canadian Imperial Bank of Commerce was quick to take advantage of a favourable swing in the sterling-dollar basis swap, to issue its debut Sonia-linked covered bond on Monday, pricing the deal flat to fair value and tighter than where it could have printed in dollars or euros. The scale of demand would have allowed for a much larger deal, suggesting good potential for follow-on supply.

Yankee banks took advantage of a strong market backdrop this week ahead of US third quarter earnings season, with Canadian banks leading the charge.