The Department of Finance and the Bank of Canada, in its role as the Government of Canada’s fiscal agent, are announcing the launch of securities lending of the government’s Canada Mortgage Bond (CMB) holdings, to support market well-functioning.
The government is making its CMB holdings available to borrow via CIBC Mellon/BNY’s pre-existing securities lending services, which uses a market-based pricing structure. CIBC Mellon/BNY was selected as agent based on a detailed evaluation of short-listed securities lending agents in the Canadian fixed-income market.
CMBs will be made available to borrow beginning Monday, February 10, 2025. The government is making its full holdings of CMBs available, and the daily average amounts on loan over the prior month for each security will be published on the Bank’s website by the fifth business day of the following month.
For further details, including terms and conditions, loan pricing, eligible collateral and to register as an eligible counterparty, please contact CIBC Mellon/BNY directly.
Note that as previously announced, the government will participate in all fixed-rate CMB syndications proposed for 2025 and will continue to target a total purchase amount of 50% of fixed-rate CMB primary issuances. The Bank of Canada will continue to conduct CMB purchases on the government’s behalf.
For further information, please contact:
Director
Funds Management Division
Department of Finance Canada
343‑549‑3651
Director
Financial Markets Department
Bank of Canada