The Globe and Mail reports in its Thursday edition that corporations are heading back into the Canadian bond markets thanks to reduced volatility and a more dovish tone from central bankers. The Globe's Alexandra Posadzki writes that investment bankers helped companies raise $14-billion in the Canadian debt markets in the first quarter. That is nearly double the $7.9-billion of debt issued by corporations in the fourth quarter of last year, when trade uncertainty roiled markets and left many corporations sitting on the sidelines.
RBC Dominion Securities took the top spot, helping its clients raise $5.2-billion through 28 debt issues. CIBC World Markets came in second, with 17 issues raking in a combined $2.7-billion.
After a slow second half of 2018, bond issuance has picked up, particularly over the course of the past month as the Bank of Canada has hit pause on its planned interest-rate hikes and the trade tension that led to market tumult begins to settle.
CIBC World Markets' Marc St-Ong says: "The environment in the capital markets has just become a lot more favourable, particularly the fixed-income market. The extreme volatility we faced in the last half of the year last year is no longer present."
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