IIAC LETTER
Canadian Short-Term Credit Markets During the COVID-19 Crisis
The IIAC has launched a series of “Letters” on the major issues impacting Canada’s investment industry. The latest IIAC Letter focuses on Canadian Short-Term Credit Markets During the COVID-19 Crisis.
Short-term credit markets came under significant duress in the middle of March with interest rate spreads spiking higher and some firms finding themselves in difficulty securing funding as a result of a rush to secure liquidity, credit concerns, and certain funding sources, such as commercial paper, locking up.
The Bank of Canada utilized a number of tools at its deposal in a timely fashion to improve commercial and financial market firm’s ability to access financing at a reasonable cost. It is clear the Bank of Canada will continue to enact measures as required, and the Canadian dealer community will rise to the occasion and competently help execute policies going forward, if called upon.
For more information, please contact Todd Evans.