Five months after a liquidity crisis halted trading on about one quarter of the outstanding paper in the Canadian ABCP market, banks have made several key changes that have drastically tightened spreads and opened the possibility of a global market for Canadian ABCP.

Several Canadian banks, including Bank of Montreal, Royal Bank of Canada and Scotia Bank recently converted their liquidity agreements from the general market disruption (GMD) system to the more globally accepted global-style liquidity facility. Previously, a GMD needed to occur before any single bank would be required to honor draw requests for CP that could not roll again in the marketplace.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.