Westlaw on Covered Bonds in Canada

Canadian covered bonds are the topic of a reference article by John Mackle in Westlaw Business titled "Covered Bonds: Canadians Do Debt in Europe" (May 26). The article's premise is that with recent Canadian covered bond issues raising billions, "the legal nuances of the covered bond will soon be a topic for discussion in many boardrooms."

Thus, the focus is on the Canadian regulatory environment and creditor protections in case of issuer insolvency.  Mackle describes certain aspects of the latter issue as a "can of worms," which he says promised Canadian legislation could help resolve.

As the article's title indicates, Mackle underscores the utility of Canadian covered bonds to raise funds in the European market.  That is perhaps surprising, given the resounding success this year of U.S. dollar-denominated covered bonds from Canadian Imperial Bank of Commerce (CIBC) and Royal Bank of Canada (RBC), aimed primarily at U.S. investors.

To read "Covered Bonds: Canadians Do Debt in Europe" on the Westlaw Business website, click here.