DBRS Releases February 2011 Monthly Canadian Covered Bond Report

DBRS has today released the Monthly Canadian Covered Bond Report, which provides an overview of the Canadian covered bond market for the month ending February 28, 2011. The report provides detailed information on this debt market, which was previously included in the Monthly Canadian ABS Report.

Canadian covered bond issuances began in 2007, following a letter issued by the Office of the Superintendent of Financial Institutions (OSFI), the regulator of Canadian financial institutions, permitting the issuance of covered bonds provided that the aggregate amount issued by any financial institution not exceed 4% of its total assets (as determined by the numerator of the asset-to-capital multiple).

The year 2010 ended with a total balance of $25.0 billion (Canadian-dollar equivalent) in covered bond issuances. There were a total of 12 new covered bond issuances in 2010 from the five largest Canadian banks, including inaugural issuances from The Toronto-Dominion Bank and Bank of Nova Scotia.

In January 2011, there was a total of $5.5 billion (Canadian-dollar equivalent) issued by Canadian Imperial Bank of Commerce, Bank of Montreal, Bank of Nova Scotia and an inaugural issuance from National Bank of Canada. There were no new issuances in February 2011. The total amount outstanding as of February 28, 2011, remained at $30.5 billion (Canadian-dollar equivalent).

On March 14, 2011, DBRS assigned a provisional rating of AAA to the Covered Bonds, Series 1 to be issued under the Caisse centrale Desjardins du Québec EUR 5 billion Global Covered Bond Programme.