By Andrew Willis
The massive new bond issues coming from Canadian financial institutions speak to the fact that the Street sees this era as a cheap time to borrow.
Bank of Nova Scotia (BNS) stepped forward on Friday with a $1-5 billion sale of five-year notes. The debt featured a 3.35% interest rate, or 66 basis points over the comparable Government of Canada bond. Subsidiary Scotia Capital led the underwriting.
Banks have accounted for 24% of all corporate bond issues in Canada so far this year, according to data gathered by Desjardins Securities. Insurers made up an additional 9% of fixed income deals. These two sectors account for six of the 10 largest bond issuers. In all, corporate Canada has sold $46.9 billion of bonds in the domestic market.