Lowest spread on a new Canada Housing issue since June 2007
Filed Under Main Content · Tagged: Bank Canada, Bank Of Canada, Basis Points, Canada Trust, Credit Crisis, Credit Markets, Global Credit, Housing Agency, Housing Trust, Inflation Outlook, Mortgage Bonds, New Canada, Overnight Rate, Post Canada, Relative Yields, Second Half
Financial Post- Canada Housing Trust, the financing arm of the nation’s housing agency, is poised to sell $6-billion (US$5.9-billion) in mortgage bonds at the lowest relative yields since before the credit markets seized up in 2007.
Canada Housing said Wednesday it will sell five-year, 2.5% bonds maturing in March 2015. The debt may price about 18 basis points above Canada’s 2.5% bonds maturing in June 2015. That would be the lowest spread on a new Canada Housing issue since June 2007, when the agency paid a spread of 14 basis points. Since then, spreads have ranged from 21 to 65.5 basis points.
Borrowing costs are falling to levels last seen in the second half of 2007 when the global credit crisis began. The Bank of Canada has pledged to leave its key overnight rate at a record low 0.25% through June unless the inflation outlook shifts…
Lowest spread on a new Canada Housing issue since June 2007
Mortgage demand drives bonds
Filed Under Main Content · Tagged: 1 Billion, Bmo Capital Markets, Canada Bonds, Canada Mortgage And Housing, Canada Mortgage And Housing Corp, Canadian Marketplace, Capital Bonds, Capital Mortgage, Cmt, Housing Trust, Industry Buzz, Issuance, Landscape, Media Headlines, Mortgage Bonds, Rbc Capital Markets, Runners, Td Securities
Financial Post- They were the biggest issuance in the Canadian marketplace last year. But there were no media headlines or industry buzz. The tried-and-true Canada Mortgage Bonds (CMB) churned out through a trust set up by the Canada Mortgage and Housing Corp. have been so much part of the landscape that their growth goes almost unnoticed.
But grow they did. In 2009, the Canada Housing Trust (CMT ) issued $47-billion worth of bonds. When the product was first launched in 2001 its first offering was for $2.1-billion. CIBC were the top book-runners for these bonds — selling $6.4-billion. They were followed by TD Securities, RBC Capital Markets and BMO Capital Markets…
