Chief executives at Canada's largest banks are voicing cautious optimism about their prospects for growth in the U.S. under a Donald Trump presidency, but are waiting for clearer signals from the incoming administration.
Promises of deregulation, large-scale infrastructure spending and rising interest rates have driven a sharp run-up in bank stocks, and Canadian bank executives have eagerly anticipated a friendlier U.S. environment.
The uncertainty dogging Mr. Trump's transition to power comes at a moment when some of Canada's largest banks are eager to grow south of the border. As Canadian operations face headwinds from a sluggish domestic economy, executives are eyeing a more favourable U.S. business climate as a catalyst for growth. Yet with few specifics to latch on to and inauguration day approaching, expressions of hope come with disclaimers about the wisdom of taking a wait-and-see approach to the president-elect's sometimes vague plans. Story
Record start to covered bonds sales leads way for Canada's banks
Canadian banks started their 2017 funding programs by selling a record amount of bonds backed by residential mortgages abroad, taking advantage of lower borrowing costs amid demand for their top-rated debt.
The country's biggest financial institutions have sold about $6-billion in covered bonds denominated in euros, U.S. dollars and pounds this year, the most on record for a year through Jan. 9.
"It's a sound economy, a sound housing market still, and good credit quality of the banking sector itself," Joost Beaumont, senior fixed-income strategist at ABN Amro Bank NV, said by phone from Amsterdam. Canadian issuers are drawn to Europe by interest rates that are still relatively low, and ahead of possible market risks posed by upcoming European elections, he said. Story
DAILY DEALS
Savanna Energy Services Corp. is following through with its promise to look for a friendlier buyer after the board of directors gave the cold shoulder to a hostile takeover bid from Total Energy Services Inc. Story
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Andrew Willis and Christina Pellegrini: Goldman Sachs Canada's new CEO prepares his pitch Story
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