Canadian Banks Sell $22 Billion Of Bonds During First Week Of September

Canadian banks are flooding the bond market, having already sold $22 billion of debt less than 10 days into the month of September.

The volume of bond issues is already enough to make September the second busiest month of the year after June, when $26 billion of debt instruments were sold.

The bond market is being deluged with new deals by governments and corporations, with businesses seeking to move before interest rates rise when central banks pull back on monetary stimulus ushered in during the global pandemic. 

In Canada, the borrowing comes after major lenders reported better-than-expected quarterly earnings in August, aided by the reopening of the economy. 

TD Bank has been the biggest issuer of bonds this month among Canadian banks, raising $4.5 billion U.S. CIBC (TSX:CM) has issued covered bonds in Australian dollars and Bank of Nova Scotia (TSX:BNS) has priced 1.5 billion Euros of covered bonds.

The sales also include HSBC Bank Canada’s debut in the Euro-denominated covered bond market, where it priced 750 million Euros of five-year debt.