On Sept. 12, the Royal Bank of Canada (RBC) pitched what some see as a game changer for U.S.-dollar covered bond issuance by foreign banks. The Canadian bank launched the very first U.S. Securities and Exchange Commission (SEC) fully registered covered bond deal — a $2.5 billion, five-year bond that priced at mid-swaps plus 35 basis points.

RBC has historically accessed the U.S. investor base only through the 144A market. The SEC registration afforded RBC approximately 10 basis points in incremental savings relative to 144A, said one person familiar with the deal.

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