Canada

Bank of Nova Scotia has issued the first sterling fixed rate covered bond since March 2015. The positive yielding five year tenor proved a more appropriate maturity than the prevailing 2026 slot which euro issuers have crowded into and the funding was cheaper than a five year dollar covered bond.

Five banks raised more than $10bn in the senior unsecured dollar market this week, exploiting strong demand and at spreads that were in line with where covered bonds would have priced.

The Province of British Columbia added a pinch of Masala to its funding menu on Thursday, printing at the tight end of guidance as it became the first foreign sovereign or sub-sovereign to enter the market.

The Province of British Columbia will dip into the Masala bond market for the first time with a January 2020 bond on Thursday.

The outlook for euro-denominated primary covered bond volumes may be revised lower over the course of this year as cheap dollar senior unsecured funding and negative euro yields hinder prospects.

The Province of Manitoba has printed ¥6bn ($59.3m) of 30 year paper, equalling the province’s longest ever note in the currency.

Export Development Canada has shown that the lower bound for dollar demand falls below the three year part of the curve, as it drew a well oversubscribed book on Thursday for a no-grow $500m August 2018 Reg S/144a deal.

The dollar market for public sector borrowers is showing remarkable disdain for bankers’ summer holiday plans, with a trio of deals printed across the curve during the usually quiet days of August. But this week’s long dated deals are unlikely to signal jumbo 10 year dollar benchmarks’ return from a long vacation.

Rating: Aa1/AA

The Province of Alberta is seeking to bolster its following among US investors by becoming a Securities and Exchange Commission registered issuer — a process it aims to complete in September.

FMS Wertmanagement printed $2bn of bonds on Wednesday for the first time since November 2013 and only the fourth time in its history, as rampant demand in the currency showed no signs of letting up.

The Province of Quebec (Aa2/A+/AA-) sold an A$80m ($61m) tap of its May 2026 Kanga bond on Wednesday.