Skip to main content

Ottawa is pumping out bonds to back the residential real estate market, with the Canada Housing Trust expected to sell $3.5-bilion of new debt this week.

As the federal government expands it mortgage insurance program, the Canada Housing Trust announced Tuesday that it will sell an additional $2.5-billion of 10-year Canada Mortgage Bonds, and launch a new $1-billion five-year floating rate note.

The 10-year offering of bonds with a 4.1-per-cent coupon is to be priced Wednesday, and TD Waterhouse said in a report that the debt is expected to be priced at a premium of 57 basis points to the comparable government bonds. Deutsche Bank, CIBC World Markets, BMO Nesbitt Burns and RBC Dominion Securities are leading the offering.

Story continues below advertisement

The Canada Housing Trust floating rate notes were priced Tuesday at 50 bps over the benchmark short-term rate. That financing was led by CIBC World Markets, Merrill Lynch, BMO Nesbitt Burns and RBC Dominion Securities.

Canada Mortgage Bonds were created in 2001 by the CMHC and have proven a hit with investors, as they offer a federal government guarantee on securities that pay far higher rates than government debt. There are more than $136-billion of these bonds now outstanding.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.