Amid a robust quarter for the overall market, CIBC has come up on top by issuance, replacing BMO Capital Markets (BMO).

In Q1 2024, Canadian Imperial Bank of Commerce (CIBC) was the most active issuer in the market with 528 structured notes issued comprising 459 non-principal-protected notes (NPPNs) and 69 principal-protected notes (PPNs). Year-over-year (YoY), the issuance saw a 50% jump from 351 structured notes - 301 NPPNs and 50 PPNs, according to the bank.

In addition, CIBC issued 105 market-linked guaranteed investment certificates (MLGICs), also up compared to the 94 MLGICS marketed in the prior-year quarter.

The increased activity has catapulted CIBC to the top of the issuance league table in the Canadian structured note market in Q1 2024, taking over BMO.

SRP has registered the issuance of 399 structured note on the paper of CIBC during the quarter, 377 of which are linked to a group of 15 single indices dominated by Solactive strategies with the remainder linked to the Eurostoxx 50 and S&P 500 indices.  

Some 46 of the notes are referenced to index basket while 16 are linked to equity (11 to single stock and five to stock basket) covering a group of 27 stocks, led by the Magnificent 7 - Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.  

Of the 16 equity-linked notes, the CIBC Autocallable Coupon Buffer Notes linked to Cenovus Energy, Series 1 is the first structure linked to the common stock of Cenovus Energy, a Canadian oil company, at the bank with a five-year tenor.

Another new tranche is the CIBC Autocallable Coupon Notes American Blue Chip Select Hedged to CAD Index, Series 1 (F-Class) due 5 February 2031. 

Meanwhile, BMO retreated to the second place after launching 354 products, comprising 294 NPPNs and 60 PPNs. There are additionally eight MLGICs, six of which are CAD-denominated and two USD-denominated, according to the bank.

SRP registered 117 of structured notes on the paper of BMO in Q1 24, of which 99 are tied to single indices. Stock basket, exchange-traded fund (ETF) and single stock underlying assets account for 10, six and two products, respectively. 

Royal Bank of Canada (RBC) marketed 326 products - 301 NPPNs and 25 PPNs, in Q1 24. RBC's issuance of NPPNs has more than doubled compared to Q1 2023 when it marketed 124 NPPNs and 45 PPNs.

Trailing closely was National Bank of Canada (NBC) with its 320 newly-issued NPPNs. The Montreal-headquartered bank, which stopped offering PPNs in 2020, also marketed 65 MLGICs in the first three months, according to the bank.

In the meantime, Scotiabank significantly increased its issuance to 227 from 267 during the quarter YoY, including 214 NPPNs and 13 PPNs. The Toronto-based bank also issued 11 MLGICs compared to two MLGICs in the prior-year period.

Among the NPPNs is the BNS Callable Contingent $12.24 Coupon Notes Linked to Cameco Corporation Series 1 (CAD), which features Cameco, a Canadian uranium company, for the first time on one of Scotiabank's products.

Another new first for Scotiabank is the BNS Core Canadian Large Cap (AR) Index Autocallable Notes Series 1 (CAD), which debuts the Solactive Core Canadian Large Cap AR Index.

TD Securities also grew its issuance to 161 from 145 compared to Q1 23 - including 98 NPPNs and 63 PPNs. In contrast, there were only 19 newly-issued PPNs on TD Securities' paper in Q1 2024, according to TD Securities.

Image: Mehaniq41/Adobe Stock.

Do you have a confidential story, tip, or comment you’d like to share? Write to summer.wang@derivia.com