HSBC Ready to Broaden Pool of Canadian Covered Bond Issuance

The Canadian unit of HSBC Holdings Plc will look to issue securities under the country’s covered bond program after being approved as its eighth participant Aug. 20.

HSBC Bank Canada got the approval from Canada Mortgage and Housing Corp., a crown corporation administering the framework for the country’s covered bond issuance. Canadian lenders have offered covered bonds, securities backed by both the issuer and a pool of assets, in debt markets across the world since 2007. Total issuance is at C$243 billion ($186 billion) with C$154 billion outstanding, according to Bloomberg data.

“Participation in the covered bond programme provides us ...