6 of Canada’s biggest banks have had their outlooks cut by S&P late today. Regulatory changes have been cited as a reason that could affect bond holders.
“The outlook revision reflects our expectation of reduced potential for extraordinary government support arising from implementation of the proposed new elements of the resolution framework for Canadian banks,” said Tom Connell at S&P
The banks affected are Toronto Dominion, RBC, Nova Scotia, Bank of Montreal, National Bank of Canada & Canadian Imperial Bank of Commerce.
UK banks were downgraded earlier this week on much the same thing and there was no real kneejerk reaction in the currency so I wouldn’t go looking for one here either when we open on Sunday/Monday
