1Q22 – A Blistering Pace in 1st Quarter



A Blistering Pace in 1Q22

It was a notable first quarter for Canadian covered bond issuers: 19 issuances across dollars, sterling and euros [see the table below].  All six of the major Canadian banks issued bonds.  On a Canadian dollar equivalence basis, the banks issued C$38.7 billion. Continuing a trend set last year, the Canadians represented 20% of covered bond offerings for the quarter — punching well above their weight. This activity is probably partly attributable to the heavy retained issuance by the banks at the start of the pandemic in March and April 2020, when nearly C$90 billion was taken to the central bank for funding. This was the inaugural covered bond repo program by the central bank. Issuance limits were temporarily increased at the time to support the central bank program and provide enhanced liquidity to the banks. Most of those covered bonds had two year maturities and are running off this year.
Pricing Issuer Series Cur. (mm) Coupon Maturity Tenor Spread Type
2022-03-30 National Bank of Canada CBL18 $ 1250 2.900 2027-04-06 5yr +65 144A
2022-03-29 Bank of Montreal CBL28 1750 1.000 2027-04-05 5yr +8 Reg S
2022-03-17 Toronto-Dominion Bank CBL34 2500 0.864 2027-03-24 5yr +11 Reg S
2022-03-17 Royal Bank of Canada CB69 150 1.296 2037-03-24 15yr +15 Reg S
2022-03-17 Royal Bank of Canada CB70 $ 1500 2.600 2027-03-24 5yr +65 144A
2022-03-15 Royal Bank of Canada CB68 2000 0.625 2026-03-25 4yr +9 Reg S
2022-03-08 Bank of Nova Scotia CBL42 2000 0.450 2026-03-16 5yr +10 Reg S
2022-03-03 CIBC CBL40 $ 100 SOFR+45 2025-03-10 3yr +45 144A
2022-03-03 CIBC CBL39 2500 0.375 2026-03-10 4yr +6 Reg S
2022-03-02 Bank of Nova Scotia CBL41 $ 2250 2.170 2027-03-09 5yr +58 144A
2022-03-02 Bank of Montreal CBL27 £ 600 SONIA+40 2027-03-09 5yr +40 Reg S
2022-02-02 Bank of Nova Scotia CBL36-2 100 0.623 2041-10-15 20yr +16 Reg S
2022-02-01 FCDQ CBL14 750 0.250 2027-02-08 5yr +5 Reg S
2022-01-20 National Bank of Canada CBL17 1000 0.125 2027-01-27 5yr +5 Reg S
2022-01-19 Bank of Montreal CBL26 2750 0.125 2027-01-26 5yr +6 Reg S
2022-01-18 Royal Bank of Canada CB67 2000 0.125 2027-01-25 5.25yr +6 Reg S
2022-01-17 Bank of Nova Scotia CBL39 £ 1300 SONIA+100 2026-01-26 4yr +28 Reg S
2022-01-17 Bank of Nova Scotia CBL40 1250 0.375 2030-03-26 8yr +10 Reg S
2022-01-11 CIBC CBL38 $ 2500 1.846 2027-01-19 5yr +48 144A/Reg S