Canada

Bank of Nova Scotia priced a $2.5bn (Eu1.96bn) three year covered bond yesterday (Thursday) that is the second largest ever dollar covered bond and the largest fixed rate single tranche dollar issue from a Canadian bank in any format, according to data from Dealogic. In euros activity has been confined to taps.

Canadian Imperial Bank of Commerce is set to price its second US dollar benchmark covered bond today (Friday).

BNP Paribas priced the biggest benchmark covered bond since the middle of April yesterday (Wednesday) to wrap up the busiest day in the market since then, with Sparebanken Vest and Dexia Kommunalbank Deutschland also taking half a yard each out of the market.

Three issuers launched euro covered bonds this (Wednesday) morning ahead of a public holiday in many parts of Germany tomorrow, with market conditions said to be better than yesterday, although still weak. Meanwhile, the US market could see its first new covered bond supply since mid-April.

Canadian bank Toronto Dominion has filed a Eu10bn public sector covered bond programme.

Desjardins, Canada’s largest co-operative financial group, is preparing to set up a covered bond programme and Quebec’s financial regulator has outlined an initial position in relation to issuance.

Royal Bank of Canada is expected to price a $1bn minimum five year deal this (Wednesday) afternoon in only the second benchmark covered bond to have been targeted at US accounts since July 2007.

Canadian Imperial Bank of Commerce recently priced a $2bn (Eu1.42bn/C$2.12bn) three year covered bond issue that was the first benchmark targeted at US investors in two-and-a-half years. The Cover spoke to CIBC about the issue this week, with regulatory reporting restrictions on the deal having just ended.

Royal Bank of Canada yesterday (Monday) sold a C$850m (Eu606m/$826m) five year covered bond, which is only the second domestic Canadian issue and comes just days after plans to introduce legislation were revealed in the country’s budget.

The Canadian government is planning to introduce covered bond legislation, according to the 2010 budget published yesterday (Thursday). [Updates yesterday’s news alert to include reaction.]

Canadian Imperial Bank of Commerce priced the first US-targeted benchmark covered bond in two-and-a-half years on Wednesday, a $2bn (Eu1.42bn/C$2.12bn) three year transaction that attracted more than $4bn of orders, and the deal is said to have generated enquiries from European issuers as to what is now feasible in the US.

The first US-targeted benchmark covered bond for two-and-a-half years could be launched as early as today (Monday), with non-US issuers said to be testing whether US investors are ready to return to the asset class.