SEC Letter Will Benefit Canada Covered Bonds -Fitch

Fitch Ratings says U.S. dollar-denominated covered bonds are likely to benefit from a letter from the SEC that effectively paves the way for the Royal Bank of Canada and other issuers to offer covered bonds to a wider range of investors. The letter, made in response to a request from RBC, also opens the door for U.S. dollar-denominated covered bonds to be included in benchmark indices investors use to track returns. Covered bond issuance in U.S. dollars from foreign financial institutions has increased sharply, reaching a high of roughly $50 billion for 2011, with nearly half of that driven by Canadian banks, Fitch says.

SEC Letter Will Benefit Canada Covered Bonds -Fitch

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