Bargains in High-Quality Credit?
Yesterday, Scotiabank came to market with a $2.25 bn 5y Senior Bond.
· The coupon was 2.95%
· Credit spread of +132 bps
The credit spread is more than double the level from just over a year ago (Feb 2021 ~ 63 bps).
Over the same period, BNS stock is up > 25%.
Dislocation?
Canadian investment-grade credit is looking very attractive. Could it get cheaper? Sure.
But at these prices, investors should be getting enticed.
