RBC Gets Permission For Covered Bond Sales In U.S.

11615_87564576 RBC Gets Permission For Covered Bond Sales In U.S. The U.S. Securities and Exchange Commission (SEC) has granted permission for Royal Bank of Canada (RBC) to issue covered bonds as publicly registered securities in the U.S.

According to a Bloomberg News report, RBC filed documents with the SEC for a mortgage-backed program that may issue up to $12 billion of bonds. RBC's sales will be conducted as private placements and will be restricted to qualified institutional buyers.

‘This development will be viewed positively by the fixed-income market,’ says Ben Colice, head of covered bonds origination at the lender's RBC Capital Markets unit in New York, adding that it will be a ‘positive step forward for the broader prospects’ of establishing a market for U.S. dollar-denominated covered bonds.

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