Hydro One Treasury Case Study

With CAD$12.445 billion of outstanding bonds as of April 2020, Hydro One had several challenges when it came to monitoring its credit spreads and those of its peers in order to issue bonds in the most cost effective manner. By working with the Overbond Treasury Debt Capital Service and automating its data intake and analytics, Hydro One can now identify opportunities to reduce the cost of funding faster and more efficiently. In short, “price tension” in markets, benchmarks, historical data and investor sentiment can now be identified more quickly. Going forward, Hydro One will be looking to incorporate Overbond’s COBI Liquidity scoring feature to strengthen understanding of the liquidity of their own bonds as well as their peers’ bonds in the secondary market. The COBI Liquidity module utilizes metrics such as bid-ask spreads, trade count and volume, and intraday price volatility for the wide spectrum of bonds to derive a daily liquidity score for each bond.