1st Canadian Covered Bond Hits Market

The first-ever Canadian mortgage covered bond deal is being marketed in Europe, according to an RBC Financial Group executive.RBC is the issuer of the transaction, and its capital markets unit is the arranger as well as one of four lead syndicate members, said David Power, vice president of the corporate treasury at RBC Financial Group. The structure of the transaction is described as similar to that of U.K. covered bonds. Most European covered bonds are based on a specific law, but covered bonds in countries such as the United Kingdom and the United States -- where no specific covered-bond legislation exists -- have been structured using a series of legal contracts instead. RBC Financial Group can be found online at http://www.rbccm.com.