Scotiabank sells C$1 billion; new bank paper totals C$2 billion for week; SEK roadshow set

By Cristal Cody

Prospect News, May 3 - Bank of Nova Scotia raised C$1 billion of short-dated deposit notes on Thursday, a day after Wednesday's offering from Royal Bank of Canada (Aa1/AA-/DBRS: AA) for C$1 billion of seven-year deposit notes.

"With two issues in the last two days, undoubtedly our debt market is getting a little chunky," a bond source said of the Canadian bank and financial sector. "It's done well, but it's hard waiting for the bank bond market to settle out just because there are a lot of bonds bouncing back and forth with the C$2 billion of issuance the last two days."

The non-financial corporate roadshow pipeline continues to fill up for May.

The Swedish Credit Export Corp. is expected to be in Canada the week of May 14 to hold a roadshow, but an offering is uncertain, a source said.

"They're coming through, meeting with investors," the source said. "There's several maple guys coming through, but it's hard to determine what's going to be developed into something."

Stockholm-based Swedish Credit Export, known as SEK, is an international financing services company for the Swedish export industry.

In the secondary market, Bank of Nova Scotia's paper firmed 2 basis points going out late afternoon.

Bank and financial paper in the U.S. high-grade market traded flat to about 3 bps weaker on Thursday, while Canadian bank paper "feels relatively strong. It doesn't feel wider," a source said.

High-grade bonds mostly traded flat to weaker over the day. The Markit CDX Series 18 North American investment-grade index eased 2 bps to a spread of 96 bps.

Canadian government bonds were mixed as traders positioned ahead of Friday's key April job report from the U.S. Department of Labor. The 10-year note yield fell 2 bps to 1.99%. The 30-year bond yield was flat at 2.59%.

Bank of Nova Scotia prices

In Canada's primary market on Thursday, Bank of Nova Scotia (Aa1/AA-/DBRS: AA) sold C$1 billion of 2.25% three-year deposit notes at 99.977 to yield 2.251%, an informed source said.

The notes due May 8, 2015 priced at a spread of 81 bps over the Canadian bond curve.

Scotia Capital Inc. was the bookrunner.

In the secondary market, Bank of Nova Scotia's new paper traded tighter at 79 bps bid, 77 bps offered, a source said.

Toronto-based Bank of Nova Scotia provides financial services across the globe.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.