Relationship Banks Still King In Canada.

CANADA; UNITED States

The article reports that traditional lending relationship between corporate clients and their banks, now but a distant memory in the U.S., is still a reality across the border in Canada. There, companies in the sub-investment grade arena have none of the myriad financing alternatives their counterparts in the U.S. benefit from. Even though there is a good base of creditworthy borrowers in the high yield segment of Canadian corporate society literally begging for financing from investors in their home country, Canada's mutual funds, pension funds and other institutional investors remain, for the most part, highly risk averse, and experts do not expect their sentiments to change any time soon.