Management’s Discussion and Analysis

BMO Capital Markets

BMO Capital Markets is a North American-based financial services provider offering a complete range of products and services to corporate, institutional and government clients. BMO Capital Markets has approximately 2,500 professionals in 30 locations around the world, including 16 offices in North America.

Patrick Cronin
Group Head
BMO Capital Markets

Lines of Business

Investment and Corporate Banking offers clients debt and equity capital-raising services, as well as loan origination and syndication, balance sheet management solutions and treasury management services. We provide strategic advice on mergers and acquisitions, restructurings and recapitalizations, as well as valuation and fairness opinions. We also offer trade finance and risk mitigation services to support the international business activities of our clients, and we provide a wide range of banking and other operating services tailored to North American and international financial institutions.

Trading Products offers research and access to global markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions that include debt, foreign exchange, interest rate, credit, equity, securitization and commodities. We also offer new product development and origination services, as well as risk management (derivatives) advice and services to hedge against fluctuations in a variety of key inputs, including interest rates and commodities prices. In addition, we provide funding and liquidity management to our clients.


Strengths and Value Drivers

  • Unified coverage and integrated distribution across our North American platform and complementary global footprint, delivering a seamless and exceptional client experience.
  • Innovative ideas and tailored solutions delivered through a comprehensive coverage team, dedicated to anticipating, understanding and meeting client needs.
  • Top-ranked Canadian equity and fixed income economic research, sales and trading capabilities with deep expertise in core sectors.
  • Strong first-line-of-defence risk management and regulatory and compliance capabilities, enabling effective decision-making in support of our strategic priorities.
  • Well-diversified platform and business mix – by sector, geography, product and currency, including a strong, scalable and relevant U.S. business – positioning BMO well in several key markets and over the long term.

Strategy and Key Priorities

BMO Capital Markets vision is to be the lead North American investment bank enabling clients to achieve their goals. We offer an integrated platform, differentiated by innovative ideas and unified coverage.

Key Priority

Continue to maintain our leadership position in Canada through our top-tier coverage team

2017 Achievements

  • Continued to win key mandates in core Canadian industries, acting as exclusive advisor to Milestone Apartments Real Estate Investment Trust (REIT) on the largest multi-family property REIT transaction in Canadian history.
  • Led Canadian dollar corporate hybrid bond offerings for TransCanada on its $1.5 billion 60NC10 year inaugural Canadian hybrid bond transaction, and for Enbridge Inc. on its combined $1.65 billion 60NC10 year inaugural Canadian hybrid bond transactions.
  • Named a 2017 Greenwich Share Leader and Quality Leader across a range of Canadian equity sales, trading and research areas.
  • Named Best House in Canada for Structured Products at the 2017 SRP Wealth Management and Derivatives Awards.
  • Named Best Bank for the Canadian Dollar by FX Week magazine for the seventh consecutive year.

2018 Focus

Continue to earn leading market share in Canada by strengthening our client relationships and driving incremental market share growth.

Key Priority

Continue to drive performance in our U.S. platform with a focused strategy and selectively grow our U.S. corporate bank where we are competitively advantaged

2017 Achievements

  • Expanded our lending and advisory mandates with leading roles in marquee transactions, such as, in the global energy sector, our largest U.S. equity transaction to date with Parsley Energy, and with Broadcom in its $5.9 billion acquisition of Brocade Communications Systems.
  • Continued to win significant cross-border mandates, including acting on behalf of Canadian-based, U.S.-backed, Jamieson Wellness Inc. in its initial public offering that raised $345 million.
  • Closed 43 U.S. M&A transactions, up 30% from the prior year, with a total deal volume of $65.4 billion.
  • Acted as bookrunner on 228 equity and debt capital raising transactions, up almost 50% from last year.
  • Ranked #1 in the Institutional Investor 2017 All-America Fixed Income Research Team Survey for U.S. Rates Strategy and Technical Analysis.

2018 Focus

Continue to leverage our key strategic investment to increase growth from our U.S. platform, and selectively grow our U.S. corporate bank where we are competitively advantaged.

Key Priority

Leverage our strong North American capabilities and presence in select international markets

2017 Achievements

  • Named World’s Best Metals & Mining Investment Bank for the eighth consecutive year by Global Finance and hosted one of the industry’s most important events, the 26th Annual Global Metals & Mining Conference, which brought together more than a thousand industry professionals representing 500 companies from 32 countries.
  • Named Best Forex Provider in North America/China for the seventh consecutive year by Global Banking and Finance Review.
  • Continued to expand our mandates in select global sectors, including as financial advisor to Chrysaor on its $3 billion acquisition of certain UK North Sea assets from Shell, and leading a convertible bond offering to refinance the outstanding portion of the Sibanye-Stillwater bridge loan raised for the acquisition of Stillwater, an American palladium and platinum-mining company.
  • Expanded our Global Trade business in Singapore, broadening the reach of our suite of trade and supply chain finance services.
  • Leveraged our presence in China, completing our first cross-border Chinese bond trade to a central bank.
  • Established a European Commercial Paper program to help our clients meet their increased regulatory demands.
  • Expanded our presence in the Supranational Sub-sovereign Agency (SSA) market and won key mandates, including the World Bank’s first U.S. dollar benchmark offering of 2017.

2018 Focus

Continue to leverage our strong North American and global capabilities to expand our footprint and strategic relationships in select international markets.



Caution

This BMO Capital Markets section contains forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.