Q: Do you know if the big drop is due to the multinational Defence, Security, and Resilience Bank (DSRB) announcement? Maybe the competition from engineering firms outside Canada ? ..
5i Research Answer:
The multinational Defence, Security, and Resilience Bank (DSRB) is a proposed international financial institution aimed at funding defence, security, and resilience projects for NATO members and allies. Recent announcements involve major banks, including Canadian ones, joining its development group. The DSRB seeks to mobilize capital through AAA-rated bonds and loans, providing affordable financing to governments and supply chains, including SMEs. It supports allied nations' commitments, such as increased NATO defence spending targets, amid geopolitical tensions. We would not really see this as negative for the E&P group. It seems the decline was more related to the announcement discussed here.