Borderless Bond Market Draws Canadian Companies South

The video discusses the increasing trend of Canadian companies issuing debt in the US bond market, highlighting a 12% increase from the previous year. It compares the issuance in US and Canadian markets, noting the appeal of lower borrowing costs in the US. Challenges for Canadian investors are addressed, as they often access these bonds in the secondary market. The impact of Federal Reserve rate changes on this trend is also explored, with expectations of continued activity despite potential interest rate fluctuations.

What is one reason Canadian companies are attracted to the US bond market?

• Limited investor base

• Smaller market size

• Cheaper borrowing costs

• Higher interest rates

Why might Canadian investors find it challenging to invest in US bond deals?

• They require a minimum investment of $1 billion

• They are only available in the primary market

• They have higher interest rates

• They are offered to US investors first

Which Canadian company returned to the US bond market for the first time since 2010?

• RBC

• Scotiabank

• Bank of Montreal

• Manulife

What is the expected trend for Canadian companies in the US bond market despite interest rate changes?

• A decrease in bond issuance

• A shift to European markets

• Continued activity with more nimble strategies

• Complete withdrawal from the US market

Which institution is the largest arranger of corporate bond sales for Canadian companies?

• Scotiabank

• Bank of Montreal

• RBC

• TD Bank