Bank of Canada Announces Temporary Expansion to the List of Eligible Securities for its Term Repo Operations and Changes to Upcoming Operations

The Bank of Canada (Bank) is committed to supporting the efficient and continuous functioning of financial markets during the current period of uncertainty in which conditions are evolving rapidly.

To that end, a further expansion of eligible collateral for Term Repo operations, in addition to changes previously announced by the Bank, is being made effective immediately.  Eligible securities for these operations will include the full range of collateral eligible for the Standing Liquidity Facility (SLF), as well as own-name covered bonds, Term ABS and ABCP, but will exclude the non-mortgage loan portfolio, Special Deposit Accounts held at the Bank and USD securities. Concentration limits will not apply for Term Repo operations. The Bank will revise the Term Repo terms and conditions to reflect these changes.

Term Repo operations will occur at least weekly as long as necessary starting tomorrow, 19 March 2020, and the size and term will be announced ahead of each operation. The details of 19 March 2020 operation are as follows:

Auction Type Amount Auction Date Settlement Date(Days) Term (Days) Maturity Date
NHA MBS $2 billion 19 March 2020 20 March 2020 90 18 June 2020
Regular $9 billion 19 March 2020 20 March 2020 356 11 March 2021

The Bank of Canada is taking concerted actions to support the Canadian economy during this period of economic stress. These measures will help ensure that financial institutions can continue to extend credit to both households and businesses, and the Canadian financial system has sufficient liquidity.

The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the functioning of the Canadian financial system.

Scott Kinnear
Director
Financial Markets Department
Bank of Canada
613 782-7723

Mark de Guzman
Director
Financial Markets Department
Bank of Canada
613 782-7245

Media Relations
Bank of Canada
613 782-8782

Content Type(s): Press, Market Notices

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