Canada

Wednesday’s shock market development saw short-selling research firm Citron allege that biotech firm Valeant Pharmaceutical inflated its sales figures by selling to “phantom captive pharmacies” in a plot reminiscent of the Enron scandal of over a decade ago.

Three dollar issuers found no lack of demand at the short end when printing a trifecta of 2018s this week but tougher markets played into more defensive pricing strategies — at least in the early stages.

Export Development Canada printed the third three year dollar deal in as many days on Thursday, suggesting that investor demand for short dated dollar debt is by no means sated.

A second Canadian SSA issuer is bringing a deal in the week that the country elected a new government — but has opted for a different core currency to its compatriot.

Province of Quebec has printed the first euro benchmark from a Canadian SSA since Ontario pulled a deal earlier this month. Though subscribed, the €750m 10 year deal was not the blowout bankers were hoping for and is indicative of a tough market environment.

A year after issuing its last euro denominated benchmark, Caisse Centrale Desjardins du Quebec (CCDJ) has mandated leads for a European roadshow.

Nederlandse Waterschapsbank bounced back from a pulled deal last week to print its largest trade in any currency to date on Tuesday, as a Canadian province mandated for a euro deal.

Royal Bank of Canada launched a €1bn three year floater on Tuesday, adding a euro trade to its recent activity in dollars and sterling before it enters a blackout period in November.

Royal Bank of Canada issued the first dollar denominated Canadian deal in three months at the widest spread this year, while Münchener Hypothekenbank supplied the only euro deal of the week.

Royal Bank of Canada — RBC

SSA borrowers shrugged off a hiccup by the Province of Ontario this week to issue a series of strongly supported benchmark euro deals.

Royal Bank of Canada priced one of the largest dollar covered bonds on Wednesday and despite pricing at the widest spread this year, the deal achieved better execution than was available in senior unsecured or euro covered bonds. It also showed the limitations of an illiquid secondary market for price discovery purposes, but with the real clearing level now set, others should follow.