RBC issued the first inaugural bail-in senior note on September 24, 2018. Investors should get familiar with this structure as the 6 big Canadian banks are set to issue approximately $170 billion over the next three years, according to RBC Capital Markets’ projection. Bail-in senior notes replaced deposit notes as the senior debt issuing structure as of September 23, 2018. All senior bond issuance will contain a provision whereby they can be converted into equity if the Office of the Superintendent of Financial Institutions (OFSI) deems a financial institution is non-viable (and remains non-viable after the non-viability contingent capital or NVCC has been converted to equity). The origins of the rule change stem from post-financial crisis efforts to create a going concern framework for the recapitalization of a bank to protect both depositors and taxpayers. Deposits such as GICs are exempt from this new feature.