Toronto-Dominion Bank is setting up a 10 billion covered bond program that it is currently marketing to European investors.
The new program will be backed entirely by residential mortgages insured by the Canada Mortgage and Housing Corp. (CMHC).
The CMHC is Canadas national housing agency that was established in 1946 as a government-owned corporation to address Canadas post-war housing shortage.
CMHC provides mortgage loan insurance, MBS, housing policy and programs, as well as housing research.
