• Notes From The Desk | Bargains in High-Quality Credit?

Notes From The Desk | Bargains in High-Quality Credit? March 03 2022

Bargains in High-Quality Credit?

Yesterday, Scotiabank came to market with a $2.25 bn 5y Senior Bond.

· The coupon was 2.95%
· Credit spread of +132 bps

The credit spread is more than double the level from just over a year ago (Feb 2021 ~ 63 bps).
Over the same period, BNS stock is up > 25%.

Dislocation?

Canadian investment-grade credit is looking very attractive.  Could it get cheaper? Sure.
But at these prices, investors should be getting enticed.

Share this...
Email this to someone
email
Share on LinkedIn
Linkedin