Commentary

Our insights into Canadian and global credit markets are key to our investment process.
Visit this page every week to stay up to speed on what’s happening in credit.

OUR LATEST HIGHLIGHT IN CORPORATE CREDIT

Highlights from the Week in Corporate Credit:
October 12 -16, 2020

Risk assets were mixed throughout the week as investors digested the ongoing stimulus talks, vaccine headlines and increasing COVID cases. US credit spreads managed to trade modestly tighter with financials outperforming following positive Q3 earnings reports.  European markets traded slightly weaker as Boris Johnson’s self-imposed Brexit deadline passed without a deal; however, talks appear to continue behind the scenes.  US Primary issuance was led by the second-biggest bank deal of all time; Friday’s 8.5 Billion multi-tranche deal from Bank of America ($BAC). Despite the formidable size, the deal traded well into the weekend.

Canadian credit underperformed global markets, but the general tone still feels positive. Corporate issuance slowed with three deals printing a combined 950mm CAD. Of note, Ontario Power issued 400mm CAD of a 5.5y note at G+83. The deal followed the latest string of successful utility issues.

READ MORE >