Morningstar DBRS Releases March 2025 Canadian Covered Bond Report

DBRS Limited (Morningstar DBRS) released the Monthly Canadian Covered Bond Report, which provides an overview of the Canadian covered bond market for the month ended March 31, 2025, along with detailed information on this debt market.

Total outstanding covered bonds decreased to $289.0 billion (Canadian-dollar equivalent) in March 2025, from $294.5 billion in the prior month.

During the month of March, there was one new issuance in the covered bond market:
-- Bank of Nova Scotia (Global Registered Covered Bond Program) Series CBL63

There were five maturities:
-- National Bank of Canada (Legislative Global Covered Bond Programme) Series CBL7
-- Bank of Nova Scotia (Global Registered Covered Bond Program) Series CBL26
-- Bank of Nova Scotia (Global Registered Covered Bond Program) Series CBL34
-- Royal Bank of Canada (Global Covered Bond Programme) Series CB50
-- Canadian Imperial Bank of Commerce (Legislative Covered Bond Programme) Series CBL40

Euro-denominated covered bonds made up the largest part of the covered bond market for the month, representing 43.6% of total covered bonds outstanding, followed by U.S.-dollar denominated covered bonds at 30.1%, and British-pound-sterling-denominated covered bonds at 13.0%.

As of March 2025, the Office of the Superintendent of Financial Institutions (OSFI) and the Autorite des marches financiers (AMF) covered bond ratios, which measure the total asset pledged for covered bonds relative to the total on-balance sheet assets, for existing programs ranged from 1.2% to 4.0%, below the 5.5% limit.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The report is available at https://dbrs.morningstar.com.

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577