George_V2
Oct 20, 8:44 PM
$CM $CM.TSX CIBC's announcement on October 19, 2026, concerns
$1 billion of Limited Recourse Capital Notes (LRCNs), classified as non-viability contingent capital, or NVCC, and Additional Tier 1 (AT1) capital.
That structure creates risks for investors that ordinary senior bank bonds generally do not have.
Risk 1: You could lose your principal
Risk 2: Interest payments are not guaranteed
Risk 3: You rank behind safer creditors
What does the
$1 billion cost CIBC?
The announcement specifies an initial annual coupon of 6.631% through November 2031, followed by a rate reset every five years at the five-year Government of Canada yield plus 2.970 percentage points.
https://financialpost.com/fp-finance/banking/cibc-preps-limited-recourse-capital-note-sale
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