Canada to issue Dollar Bonds

August 28th, 2009 11:31 am | by John Jansen |

Canada Plans U.S.-Dollar Global Bond Issue, First in a Decade
2009-08-28 14:04:05.373 GMT

By Greg Quinn
Aug. 28 (Bloomberg) — Canada plans to sell U.S.-dollar
bonds worldwide in “the near future,” the first such sale in
more than a decade, Finance Minister Jim Flaherty said on the
department’s Web site today.

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  1. 16 Responses to “Canada to issue Dollar Bonds”

  2. By Tyler K on Aug 28, 2009 | Reply

    Crazy Canadians. What are they thinking, eh!

  3. By Bman on Aug 28, 2009 | Reply

    They recently expessed concern that the Canadian dollar was getting too strong vs. U.S.

  4. By Tyler K on Aug 28, 2009 | Reply

    It was more jawboning (round one came in June) … low nineties is nothing to worry about.

    However, seizing on the opportunity to pay back debt in the future at substantially lower cost (assuming that the US buckeroo is going to depreciate against the CAD) is not a bad idea.

  5. By Michael on Aug 28, 2009 | Reply

    This will backfire on them. Getting too clever. They are better off monetizing debt in CAD.

  6. By TechGuy on Aug 28, 2009 | Reply

    Quick Question:

    Are the Canadians selling US bonds (treasuries) that the currently hold, or are the Canadians issuing new debt, that are priced in US dollars instead of Canadian Dollars?

  7. By Bman on Aug 28, 2009 | Reply

    As long as they keep making pemeal bacon and fries with gravy and poutine they can issue whatever they like 🙂

  8. By Tyler K on Aug 28, 2009 | Reply

    The later — its new issues denominated in US dollars

    As and aside, the COB has somewhat reduced its holdings of US Ts over the past year.

  9. By joe on Aug 28, 2009 | Reply

    Either this is a bottom (at least short term) for the dollar, or the BOC should start a global macro hedge fund…

  10. By Brett Tibbitts on Aug 28, 2009 | Reply

    Makes sense to me….would even make more sense if they wait until the loonie is at .86 to USD

  11. By Trader Kitteh on Aug 28, 2009 | Reply

    Why they didnt do this at 1.60 ? Talk about a top, when the govt gets in on the gig…

  12. By Chicken on Aug 29, 2009 | Reply

    This of course has Carney/Goldman Sachs written all over it… Flaherty knows he’d better inject a disclamer by saying he’s not ready to declare an end to the recession.

  13. By DFTT on Aug 29, 2009 | Reply

    Dept of Finance link to the release, http://www.fin.gc.ca/n08/09-079-eng.asp

    BoC Review on the EFA, http://www.bank-banque-canada.ca/en/review/2001/deleone.pdf

  14. By DFTT on Aug 29, 2009 | Reply

    RBC, BNP Paribas, J.P. Morgan & Bank of America Merrill Lynch

  15. By jozo on Aug 29, 2009 | Reply

    Hi guy,
    how long do you think that this kick in the ass could last? … considering that obviously regular Treasury auctions became too risky or not enough… What’s the Canadian need for bonds ? and isn’t it a way to new common currency?

  16. By Johan on Aug 29, 2009 | Reply

    Carry trade!

  17. By crazy canuck on Aug 31, 2009 | Reply

    You guys should do your homework before complaining so much (but maybe it’a a pastime of yours). Canada will only issue USD to fund foreign currency reserves and fund their commitment to the IMF. This WILL NOT replace any domestic borrowing. This is just a way to diversify their foreign currency funding instead of doing only swap. EH! Furthermore it is a great credit so why complain, just don’t buy it if you don’t like it.

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