TD Securities

After another week of a super solid dollar market, public sector bankers are starting to refer to the currency as “darling” — and all the signs suggest that the relationship is set for an extended honeymoon.

Rating: Aaa/AAA

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 dollar market is set to remain the “darling” — in the words of one syndicate banker — currency in the coming weeks, after a trio of strong deals on Wednesday.

Nederlandse Waterschapsbank tapped a A$355m ($266.6m) 3.15% September 2026 Kangaroo bond on Wednesday for A$55m.

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

A trio of issuers on Tuesday mandated for dollar deals across the shorter end of the curve, as underlying US Treasury yields stayed slightly elevated after last Friday’s meeting of central bankers in Jackson Hole.

A seemingly unstoppable flow of dollar issuance from public sector borrowers looks set to spill into next week, after a slightly undersubscribed deal early this week failed to dent sentiment for other trades.

Rating: Aaa/AAA/AAA

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.

A pair of issuers brought comfortably oversubscribed dollar benchmarks on Wednesday, leading bankers to speculate that other issuers could be tempted to follow with trades in the currency next week.

BMW exceeded market expectations with an A$150m MTN on Wednesday, surprising dealers with the strength of demand it attracted.