Mortgage Bonds Lure Yield Starved U.S. Buyers: Canada Credit
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International investors frustrated with some of the lowest yields on record for U.S. housing bonds are turning to Canada for higher returns.
Canada Housing Trust sold C$6.25 billion ($6.1 billion) of five-year bonds last week to yield 24.5 basis points more than benchmark rates, almost half the 42.5-basis-point spread it paid to issue comparable debt in June. Non-Canadians took 37 percent of the sale, versus an average of 25 percent to 30 percent over the past two years, said Mark Chamie, Ottawa-based treasurer of Canada Mortgage and Housing Corp.