Foreign investors are favouring Canadian bonds, as holdings reached $10.6 billion in November – a 10-month high overall and the second largest monthly inflow in 2013 – reported Statistics Canada on Thursday.
Adding $8.7 billion of Canadian securities to their holdings in November alone (largely composed of corporate securities), foreign investors acquired $3.4 billion in debt securities and added $7.9 billion of corporate bonds to their portfolios – evenly split between private corporate and federal business enterprise bonds.
According to Statistics Canada, this marks the eighth consecutive month of foreign investment in private corporate bonds and the largest investment in federal business enterprise bonds since May 2009. In addition, federal government bonds saw foreign investment of $2.5 billion – the largest in eight months – while foreign investment in
Canadian equities reached $5.2 billion – marking a third straight month of acquisitions, totaling $20.4 billion. (continued on Page 2)