Corporate issuers are racing to sell debt denominated in Canadian dollars as the standoff around the U.S. debt ceiling continues and investors look to lock in the highest yields since November.
Bank of Montreal is leading five issuers raising $4.75 billion in the Canadian dollar bond market this week, according to data compiled by Bloomberg. That’s the most since the second week of January, when five companies priced $5.5 billion in new bond deals.
That’s not all that’s encouraging companies to tap the loonie market now: Traders are betting on at least one additional rate hike by the Bank of Canada this year, which is set to hold its next monetary policy meeting on June 7. Investors are scouring for new investment opportunities ahead of billions in expected coupon payments next month. For the first half of June, investors in the FTSE Canada Universe Bond Index expect about $13 billion in payments, based on estimates sent by bond dealers earlier this month.
BMO, which sold a separate covered bond deal in British pounds on Thursday, didn’t immediately respond to a request for comment. A representative for Inter Pipeline also didn’t respond to a request for comment.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canadian banks pricing in a recession around the end of the year: Portfolio manager - BNN BloombergOne portfolio manager said that Canada’s largest banks are pricing in a recession to occur around the end of the year, which is weighing on sentiment for bank stocks.
Read more »
Expect Canadian banks to set aside more money for loan losses: Analyst - BNN BloombergCanada's leading banks are taking precaution in the face of a possible recession by setting aside more money for credit losses.
Read more »
Ottawa rejigs trusted-traveller program in bid to avoid last summer's airport chaos - BNN BloombergThe federal government is rolling out a revamp of its trusted-traveller program to help clear clogged airports as the summer travel season kicks off.
Read more »
Mountain Equipment to open New Brunswick store amid East Coast expansion - BNN BloombergOutdoor retailer Mountain Equipment is opening a new store in New Brunswick this summer as it expands its brick-and-mortar presence on Canada's East Coast.
Read more »
Scotiabank economist explains his call for another Bank of Canada interest rate hike - BNN BloombergA Bank of Nova Scotia economist who announced last week his call for an additional rate hike from the Bank of Canada says that it is needed in order for the central bank to reinforce its mandate to Canadians.
Read more »
Deputy finance minister tapped as next Hydro-Quebec CEO: Sources - BNN BloombergQuebec’s government has chosen former pension fund head Michael Sabia as the next chief executive officer of Hydro-Quebec, according to people familiar with the matter.
Read more »