CIBC Issues First US-Targeted Covered Bond Since 2007

For the first time since 2007, Canadian Imperial Bank of Commerce (CIBC) has sold US$2bn of covered bonds to US investors. The transaction attracted more than US$4bn of orders, suggesting that US markets may finally be developing an appetite for this low-risk debt, which is issued mostly by banks and secured by a pool of mortgage loans guaranteed by the government. It has been the preserve of Europe until now, with European deals reaching US$50bn y-t-d or five times more than in 2009 y-t-d. Take-up has been inexistent in the US because unlike in Europe, there is no investor protection

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