How good are Scotiabank, CIBC and RBC Mining Groups in Toronto?

Billy Banker

What do you mean by Scotia is losing share to BMO based on deal economics? (sorry if that's a dumb question)

Banks win mining deals by leveraging their large balance sheets (customer cash deposits) to make large loans at cheap costs of debt to mining company borrowers. Typically, the banks syndicate the loan to any single borrower (split the loan among the banks to de-risk) and not all are equally in the syndicate. The leader (agent) typically has highest exposure, and implicitly they in return expect to get favourable “deal economics” aka fees on ancillary business like m&a, dcm/ecm lead roles where they get a higher share of fees, because they stuck their neck out on the loan and lead it. Unfortunately for scotia, despite them sticking their necks out for their mining clients on loans, they still lose lead roles in ecm/dcm/m&a to BMO because BMO is better lol.