It appears that despite the negative economic consequences resulting from the pandemic crisis, Canada’s debt markets still remain highly attractive for foreign investors.
According to a recent report by Statistics Canada, $49 billion worth of Canadian securities have been purchased from abroad in April – the largest on record. Of the $49 billion, federal government bonds accounted for $15.8 billion, as well as an assortment of money market instruments including treasury bills. In addition, foreign investors had also purchased $25.4 billion worth of corporate bonds.
The sudden interest in Canada’s debt market comes amid the federal government’s federal debt issuance as a means of increasing government revenue during the pandemic. On the other hand however, Canada’s stock market lacked the abundance of attention, and instead a net total of $4.9 billion worth of investment fund shares and equities were sold in April.
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Information for this briefing was found via Bloomberg and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
