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.
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.