Foreign buyers flock to Canadian debt

If there was any question of Canada’s growing reputation as a safe haven, the latest data from StatsCan back it up. Foreign investors bought $13.3 billion worth of Canadian securities in January.

Bonds were the order of the month, attracting $10.1 billion in net new investment. Federal government bonds made up a little more than half that total, with two-year benchmark bonds being favoured.

Provincial bonds—primarily new short-term, U.S.-denominated ones—accounted for $1.8 billion in purchases.

While non-residents may prefer our debt, they have continued a six-month buying spree in Canadian equities as well, adding another $1.3 billion in January.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.