{"id":494173,"date":"2010-03-31T08:15:00","date_gmt":"2010-03-31T12:15:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:416674"},"modified":"2010-03-31T08:15:00","modified_gmt":"2010-03-31T12:15:00","slug":"foreigners-cant-get-enough-canadian-bonds","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/494173","title":{"rendered":"Foreigners can&#8217;t get enough Canadian bonds"},"content":{"rendered":"<p>With a current account deficit of $41.3-billion, or 2.7% of GDP, 2009<br \/>\nmarked Canada&#39;s first year of outflows in a decade. Yet financing the<br \/>\ndeficit was easy as foreign portfolio managers bought $109-billion worth<br \/>\n of Canadian securities.<\/p>\n<p>They were particularly keen on Canadian bonds, purchasing nearly 80% of<br \/>\nnet new corporate issues. The provinces also sold a significant amount<br \/>\nof bonds abroad for the first time in 13 years, according to National<br \/>\nBank Financial. However, nearly all of the bonds issued or backed by the<br \/>\n Government of Canada were sold in Canada.<\/p>\n<p>&quot;While foreigners increased their Canadian bond holdings, Canadians did<br \/>\nthe inverse with foreign bonds,&quot; St\u00e9fane Marion, NBF&#39;s chief economist<br \/>\nand strategist, told clients.<\/p>\n<p>He expects the appeal of Canadian securities to persist, particularly<br \/>\nbecause of the relatively low level of Canada&#39;s public-sector debt.<\/p>\n<p>&quot;Judging from the January figures, the least we can say is that foreign<br \/>\nappetite for Canadian securities did not let up,&quot; he said.<\/p>\n<p>Foreigners purchased $11.8-billion worth of Canadian securities in the<br \/>\nfirst month of 2010, while Canadian portfolio managers sold $5.8-billion<br \/>\n in foreign securities. While portfolio transactions are available on a<br \/>\nmonthly basis, they do not specify what the Canadian managers did with<br \/>\nthese proceeds. However, Mr. Marion said it is reasonable to assume that<br \/>\n they were re-invested in Canadian securities.<\/p>\n<p>&quot;In other words, Canadian securities appealed as much to Canadian<br \/>\nportfolio managers as to their foreign counterparts.&quot;<\/p>\n<p>The preference foreign fund managers are showing for Canadian-issued<br \/>\nbonds resembles the early 1990s. In the 12 months ending in January<br \/>\n2010, corporate bonds saw net acquisitions of $31.3-billion, compared<br \/>\nwith $28-billion for federal bonds and $27-billion for all bonds issued<br \/>\nby the provinces, public enterprises and municipalities. <\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=416674\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With a current account deficit of $41.3-billion, or 2.7% of GDP, 2009 marked Canada&#39;s first year of outflows in a decade. Yet financing the deficit was easy as foreign portfolio managers bought $109-billion worth of Canadian securities. They were particularly keen on Canadian bonds, purchasing nearly 80% of net new corporate issues. The provinces also [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-494173","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/494173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=494173"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/494173\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=494173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=494173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=494173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}