Bank of Nova Scotia has been sounding out investors for a potential synthetic notes offering to boost its capital buffers, according to people with knowledge of the matter.
The potential privately-placed securitization, a credit risk transfer deal, would increase the amount of so-called loss-absorbing buffers at the Toronto-based bank at a time when regulators are increasing capital requirements, according to the people. Scotiabank is working with BNP Paribas SA to iron out specific details of the possible deal, which is in very early stages, one of the people said.
Read More : Scotiabank Looks into Synthetic Risk Transfer as Capital Rules Move Forward