Morningstar DBRS Releases May 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 May 31, 2025, along with detailed information on this debt market.

Total outstanding covered bonds increased to $288.3 billion (Canadian-dollar equivalent) in May 2025, from $286.9 billion in the prior month.

During the month of May, there were two new issuances in the covered bond market:
-- Canadian Imperial Bank of Commerce (Legislative Covered Bond Programme) Series CBL60
-- Caisse centrale Desjardins du Québec (Global Legislative Covered Bond Programme) Series CBL31

There were three maturities:
-- Royal Bank of Canada (Global Covered Bond Programme) Series CB72
-- Royal Bank of Canada (Global Covered Bond Programme) Series CB73
-- Equitable Bank (Global Legislative Covered Bond Programme) Series CBL2

Euro-denominated covered bonds made up the largest part of the covered bond market for the month, representing 44.7% of total covered bonds outstanding, followed by U.S.-dollar denominated covered bonds at 30.1%, and British-pound-sterling-denominated covered bonds at 12.4%.

As of May 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 4.1%, 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
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577