Financial institutions are getting a warm reception in domestic credit markets, with both the Caisse Centrale Desjardins and GE Capital Canada upsizing offerings on Thursday.
In a week that had already seen successful offerings from the big banks, Desjardins launched a $300-million five-year note offering, and ended up raising $500-million.
The deposit notes pay 3.788 per cent interest, or 110 basis points over the comparable government of Canada bond. Desjardins Securities led the offering.
GE Capital's five-year offering also started the day as a $300-million deal, and ended up at $500-million. These notes pay 4.24 per cent interest, or 155.5 basis points over the benchmark.
RBC Dominion Securities led the deal.
Bank of Montreal and Scotiabank staged large debt issues earlier in the week. Buyers of this debt are looking for high-quailty alternatives to government bonds. Easy access to funding for financial institutions is a positive sign for the economy.