TD Securities

Export Development Canada sold its largest bond in sterling in over two years on Wednesday as investor appetite for the currency showed little sign of abating.

A £1bn bond from the European Investment Bank last Friday should inspire other issuers to try their luck in the sterling market this week, said bankers.

The Asian Infrastructure and Investment Bank may follow other SSAs to the Kangaroo market.

SSA activity in the Kangaroo market is picking up after a move in the cross currency basis swap between Australian dollars and euros.

The European Bank for Reconstruction and Development printed a $500m floating rate note on Thursday in the week’s third deal in the format.

The European Investment Bank printed a three year dollar benchmark on Wednesday, joining other issuers this week in staying at the short end of the curve.

When TD Securities was appointed as the 22nd primary dealer in the US in February 2014, it represented an important landmark in the evolution of TD Securities’ global capital market franchise, underscoring its long-term commitment to the world’s largest and most liquid fixed income market. John Moore, head of US and international fixed income, says that the firm’s increasingly prominent position in the US capital market builds on the fast-growing footprint of its parent, Toronto-Dominion Bank (TD Bank) across the US banking sector.

Covered bond activity slowed this week with only three deals emerging, half the number seen in the prior week, with Canadian issuers at the fore.

A pair of rare SSA names kept Kangaroo and Kauri bond supply ticking over this week, as Asian investor appetite drove demand.

The Asian Development Bank added to a busy few weeks in the Kauri market with a NZ$200m ($140m) five year note on Wednesday.

Rentenbank added to a strong run of Kauri issuance over the last week with a NZ$100m ($69.2m) five year deal on Tuesday, as another issuer lined up a trade in the format.

Issuers and investors have had to get used to an environment of heavily negative swap spreads in the US market during the last six months. Swap spreads have come back from the tightest levels seen before Christmas, however intraday volatility and big swings in the shape of the swap spread curve continue to provide a challenging backdrop for SSA issuers and investors to navigate