Canada

Rating: Aa3/AA/AA

North American banks took advantage of the opportunities offered by euros this week, as the dollar market remained quiet ahead of Labor Day on Monday. The deals showed the FIG sector regaining its poise after the recent bout of volatility, said bankers.

The Canadian state of Quebec has delayed the implementation of a new rule that would require registration for foreign brokers trading derivatives for investors located there.

Activity in the covered bond primary market continued at a brisk pace on Wednesday as RBC, DG Hyp, Caffil and Erste Bank priced transactions, taking the deal count this week to 10. Despite mixed receptions, issuers have been able to raise over €7bn, with over €3bn issued on Wednesday, and at levels that look attractive compared to senior unsecured financials.

National Bank of Canada and Bank of Nova Scotia joined the list of Canadian banks heading for euros on Wednesday, but bankers say the market is there for Europeans that want to use it.

Canadian Imperial Bank of Commerce and Toronto-Dominion Bank launched euro floaters on Tuesday morning, and bankers expect fellow North American banks to follow their lead in the next few sessions.

For the third quarter this year (April to July), profits at Royal Bank of Canada’s capital markets division fell, but the numbers still look strong.

Canada has printed a private medium term note in dollars for the first time in over a year.

The dollar market for SSAs kept up this week’s sizzling form on Wednesday, as another issuer mandated for a benchmark — bringing the total for what is historically a quiet week to four deals.

Canadian investors are not being put off by China's recent equity and currency volatility. CI Investment, the first Canada-based firm to have obtained a Renminbi Qualified Foreign Institutional Investor (RQFII) licence, has told GlobalRMB that the China is still attractive to those wanting to increase their international exposure.

Export Development Canada (EDC) has priced its inaugural public bond in offshore renminbi and, having beaten its initial size target on the deal, could soon be back in the market.

The Asia ex Japan bond market was crowded on August 4 with Oceanwide Holdings and eHi opening books for respective dollar bonds, and Export Development Canada (EDC) and HNA Tourism opting for offshore renminbi (CNH) offerings.