Banks have already printed more green bonds this year than they sold in the whole of 2020 and the momentum in issuance is showing no sign of slowing. Borrowers are increasingly interested in labelling subordinated debt, amid growing evidence that such products can offer even more pricing power.
By Bill Thornhill, Lewis McLellan
25 May 2021
Hedge funds have taken a lot of heat for their role in inflating order books and flexing spreads, only to flip out and take profits at the first opportunity. But despite their awkward and at times antagonistic presence, issuers are coming to learn that they are probably better off having them in the order book than not.
Hedge funds rightly take a lot of criticism for their excessive orders. Over the past year, record order books became so commonplace that they scarcely warrant a mention.At times, issuers egos were inflated along with the order books, only to be deflated and bruised subsequently if trading in
By Bill Thornhill
12.00 PM
The Covid-19 pandemic caused severe disruption to financial markets in 2020-2021. During this difficult time, the Bank of Canada and the Office of the Superintendent of Financial Institutions took a number of actions to build resilience and improve the stability of the Canadian financial system. Federally regulated financial institutions were, among other things, permitted the privilege to pledge covered bonds with the central bank, which provided access to long-term repos and benefited from preferential regulatory treatment of loans subject to payment deferrals.
Recent first quarter results have shown that the Canadian banks have so far managed the crisis admirably. However, the pandemic has left some key questions regarding their balance sheets.