National Bank tops Canadian debt advisory in 2016

Thu Jan 5, 2017 1:25pm EST
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By John Tilak and Matt Scuffham

NEW YORK/TORONTO (Reuters) - National Bank of Canada (NA.TO: Quote) was the top adviser on Canadian debt issues for corporations and governments in 2016, ending Royal Bank of Canada's 10-year reign, data from Thomson Reuters on Thursday showed.

Royal Bank of Canada (RY.TO: Quote) held the No. 1 position every year from 2006 to 2015. In 2016, RBC took the second spot, followed by Toronto Dominion Bank (TD.TO: Quote), Bank of Montreal (BMO.TO: Quote), Canadian Imperial Bank of Commerce (CM.TO: Quote) and Bank of Nova Scotia (BNS.TO: Quote).

The value of debt issues rose 1 percent to C$163.6 billion, excluding self-led issuance by banks, from about C$162.3 billion in 2015.

While 2016 started off slowly with increased volatility and sluggish credit markets, deals started to gain momentum from the second quarter.

"There was a lot of stress and concern about oil prices and China. Once oil recovered and Brexit was out of the way, people realized the world is not going to end," said Sean St. John, head of fixed income, debt and equity capital markets at National Bank Financial.

"Oil moved back up and that story alone gave people confidence," he added.

Oil prices touched a low of $27.10 a barrel on Jan. 20, but ended the year 45 percent higher at $56.82 after major producers agreed to cut output to reduce a global supply glut.

The U.S. Federal Reserve's move to raise interest rates could be a positive catalyst for the market, some bankers said.   Continued...

A sign is pictured outside a National Bank of Canada branch in Ottawa, Ontario, Canada on August 27, 2009.      REUTERS/Chris Wattie/File Photo