Net borrowings by Canadian corporations and governments in the form of debt securities totalled $73.1 billion in the third quarter, up from $16.8 billion in the previous quarter. The financing activity in the third quarter was led by the government sector, followed by non-financial corporations.
Overall, the total outstanding value of Canadian debt securities, in book value terms, reached $5,945.3 billion at the end of the third quarter, up $83.9 billion from the previous quarter. In terms of maturity, 20% of the overall outstanding debt securities will be maturing before the end of September 2025.
Chart 1: Debt securities issues by sector, stocks at book value
Description - Chart 1
Data table: Debt securities issues by sector, stocks at book value
Source(s): Table 36-10-0605-01.
Net issuances of debt securities led by the government sector
In the third quarter, net issuances of debt securities by the government sector amounted to $37.0 billion, the sixth consecutive quarter in which issuances exceeded retirements. Since the second quarter of 2023, governments have raised a net $221.5 billion in the form of debt instruments, nearly 20% of which was on international markets. The federal government led the issuance activity in the third quarter of 2024, raising a net $19.0 billion of funds, mainly in the form of bonds. Meanwhile, provincial and territorial governments issued a net $17.7 billion of debt securities.
Canadian non-financial corporations were also net borrowers of funds in the third quarter, raising $22.1 billion on the credit market. On an industry basis, firms from the transportation industry (+$10.9 billion) as well as from the mining industry (+$3.4 billion) contributed the most to the net issuance activity.
Canadian financial corporations borrowed a net $14.0 billion in debt instruments in the third quarter. Issuances by insurance corporations and pension funds totalled $6.5 billion, mainly composed of bonds.
Through the third quarter, the Bank of Canada reduced its policy rate by 25 basis points twice, for a total reduction of 50 basis points, to 4.25%.
Chart 2: Canadian debt securities issues by sector, net issuances
Description - Chart 2
Data table: Canadian debt securities issues by sector, net issuances
Note: Net issuances denote new issuances less retirements.
Source: Table 36-10-0602-01.
Retirements of Canadian shares continue to exceed new issuances
Net retirements of Canadian equity securities totalled $9.9 billion in the third quarter, the largest amount since the second quarter of 2023. The activity in the third quarter of 2024 was driven by share buybacks. The market value of outstanding Canadian equity securities reached $4,622.7 billion at the end of the third quarter, up $382.1 billion from the previous quarter. Canadian equity prices, as measured by Standard and Poor's/Toronto Stock Exchange composite index, increased by 9.7% in the third quarter.
Chart 3: Canadian equity securities issues by sector, net issuances
Description - Chart 3
Data table: Canadian equity securities issues by sector, net issuances
Note: Net issuances denote new issuances less retirements.
Source: Table 36-10-0621-01.
Information on Canadian holdings of foreign securities
In addition to Canadian securities, the securities statistics framework includes data on foreign securities held by Canadian investors. These investors are strongly exposed to foreign financial markets, with the United States being by far the top investment destination. Canadian holdings of foreign securities, in market value terms, reached $3,963.4 billion at the end of the third quarter, up $215.6 billion from the previous quarter. Holdings of foreign shares stood at $2,975.3 billion, while holdings of debt securities amounted to $988.1 billion. At the end of the third quarter, 71% of all holdings of foreign securities were in US instruments.
Table 1: Debt and equity securities issues, net issuances
Table 2: Debt securities issues, stocks at book value
Table 3: Debt and equity securities issues, stocks at market value
Note to readers
This quarterly release, available about 70 days after the reference period, includes information on debt securities issues by sector, currency, maturity, type of interest rate and market of issuance, as well as by the economic sectors issuing debt securities in relation with the sectors investing in these instruments. It also includes information on Canadian equity securities by sector and industry. Statistics on Canadian portfolio investment abroad, previously released with Canada's international investment position, are now available with this release. Canadian holdings of foreign securities by type of securities, by currency of denomination, by country of issuer of these securities, and by sector of non-resident issuer are available.
Definitions and concepts used are consistent with the recommendations of the Handbook on Securities Statistics, an internationally agreed-upon framework for classifying securities instruments. Data are accessible through an easy-to-use and flexible visualization tool. The tool includes dynamic cross-tables that allow users to look at the dataset from a variety of dimensions, as well as other visualization layers that illustrate different characteristics of the data in the form of interactive tables and charts.
Revisions
This release incorporates statistical revisions back to 2021 as part of the regular annual revision cycle of the Canadian System of Macroeconomic Accounts. Revisions essentially reflect the integration of new data sources and benchmark survey data, as well as methodological enhancements.
Definitions
Securities statistics cover issuances and holdings of negotiable financial instruments. Securities include debt instruments designed to be traded in financial markets, such as treasury bills, commercial paper and bonds, as well as equity instruments, such as listed shares.
The book value of a debt instrument reflects the value of the debt at creation, and any subsequent economic flows, such as transactions (e.g., repayment of principal), valuation changes (independent of changes in its market price) and other changes. The book value is composed of the outstanding principal amount plus any accrued interest. The market value reflects the value at which securities are acquired or disposed of in transactions between willing parties, excluding commissions, fees and taxes.
Currency valuation
The value of securities denominated in foreign currency is converted to Canadian dollars at the end of each period. When the Canadian dollar appreciates in value, the restatement of the value of these instruments in Canadian dollars lowers the recorded value. The opposite is true when the Canadian dollar depreciates.
Reference
Data tables: Access the latest tables.
- Note: some data tables may best be viewed on desktop.
Definitions, data sources and methods: survey number 5285.
Previous release: Securities statistics, second quarter 2024
Contact information
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