The Financial Post reports in its Friday edition that Canada's energy bonds, many of which have lagged a corporate debt rally, could get a boost should the opposition Conservative Party defeat Prime Minister Justin Trudeau in October elections, according to analysts at TD Bank and Manulife Investments.
A Bloomberg dispatch to the Post says that Conservative leader Andrew Scheer's pledge to scale back new approval requirements for energy projects would be seen as a positive development for the industry, according to James Spicer, a TD Securities analyst.
Canada's ruling Liberal party passed a bill known as C-69 this year, widening the range of impacts that must be included on major industrial and energy projects.
Two oil-industry lobby groups have rejected the bill.
"A Conservative government win would be positive for the Canadian energy sector and Canadian energy bonds," said Mr. Spicer in a written statement. "The current government and legislation like C-69 have been seen by some companies in the energy industry as an existential threat for their competitiveness."
The yield on an index of five-year Canadian high-yield energy bonds declined 66 basis points in the last year, according to Bloomberg data.
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