A record $12.5 billion worth of Canada Mortgage Bonds (CMBs) were sold yesterday.  In all, 25 lenders sold 64,000 insured mortgages in this transaction, according to Reuters.

Big and small Canadian lenders are increasingly relying on CMBs to fund their mortgages.  That’s because many other low-cost funding sources have dried up in the wake of the subprime crisis.

In CMHC’s words, Canada Mortgage Bonds provide the market with a competitive and alternate source of mortgage funds, which help reduce mortgage financing costs for Canadians.