Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

BNS hits bond market Add to ...

Canada's banks are back in the debt markets on Tuesday, with Bank of Nova Scotia marketing $1-billion of seven-year notes.

Scotiabank is attempting to sell new bonds at the same price its existing seven-year notes command - a premium of 102 basis points to the comparable government of Canada bond. A trader on one desk described this pricing as a tad aggressive, as recent new issues have been done at a small discount to the price of existing bonds, to entice investors in volatile markets.

More Related to this Story

Scotia Capital is leading the offering.

On Wednesday, Bank of Montreal sold $2-billion (U.S.) of what's known as covered bonds, which are backed by both the bank and CMHC-insured residential mortgages.

"Canadian banks have increased their activity in the U.S. bond market this year, taking advantage of the fact that the Canadian bank sector as a whole fared noticeably better in the financial meltdown of the past few years than did U.S. and European rivals" said a report on Thursday from Kathleen Shanley at corporate bond research boutique Gimme Credit.

Follow us on Twitter: @GlobeBusiness

 

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories