Canada launches securities lending of CMB holdings
10 February 2025 Canada
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The Department of Finance and the Bank of Canada have launched securities lending of the government’s Canada mortgage bond (CMB) holdings to support the market well-functioning.
The government is making its CMB holdings available to borrow through CIBC Mellon’s pre-existing securities lending services, which use a market-based pricing structure.
According to the Bank of Canada, CIBC Mellon was selected as an agent based on a detailed evaluation of short-listed securities lending agents in the Canadian fixed-income market.
Starting on 10 February, the government is making its full holdings of CMBs available, and the bank will publish the daily average amounts on loan over the prior month for each security on its website by the fifth business day of the following month.
The government will participate in all fixed-rate CMB syndications proposed for 2025 and will continue to target a total purchase amount of 50 per cent of fixed-rate CMB primary issuances, while the Bank of Canada will continue to conduct CMB purchases on the government’s behalf.
The government is making its CMB holdings available to borrow through CIBC Mellon’s pre-existing securities lending services, which use a market-based pricing structure.
According to the Bank of Canada, CIBC Mellon was selected as an agent based on a detailed evaluation of short-listed securities lending agents in the Canadian fixed-income market.
Starting on 10 February, the government is making its full holdings of CMBs available, and the bank will publish the daily average amounts on loan over the prior month for each security on its website by the fifth business day of the following month.
The government will participate in all fixed-rate CMB syndications proposed for 2025 and will continue to target a total purchase amount of 50 per cent of fixed-rate CMB primary issuances, while the Bank of Canada will continue to conduct CMB purchases on the government’s behalf.
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