Securities statistics, fourth quarter 2024

Canadian governments and corporations borrowed a net $47.0 billion in the form of debt securities in the fourth quarter, down from net issuances of $71.3 billion in the previous quarter. Both non-financial corporations and financial corporations reduced their borrowing activity, while government net issuances rose in the quarter.

The total outstanding value of Canadian debt securities, in book value terms, reached $6,098.8 billion at the end of the fourth quarter, up $112.9 billion from the previous quarter. This increase reflected net borrowings, as well as the upward revaluation of the stock resulting from the depreciation of the Canadian dollar against the US dollar. At the end of 2024, 20% of the total outstanding value of debt securities was denominated in US dollar.

Chart 1: Debt securities issues by sector, stocks at book value

Source: Table 36-10-0605-01.

Government borrowing activity increases

Net issuances of debt securities by the government sector totalled $31.2 billion in the fourth quarter, up from $28.7 billion in the previous quarter. The financing activity came from all levels of government in the quarter. By instrument, borrowings were mainly in the form of long-term debt instruments (+$21.6 billion). On a currency basis, debt securities denominated in Canadian dollar (+$31.4 billion) led the financing activity.

Borrowings by Canadian financial corporations and non-financial corporations slowed in the fourth quarter. Financial corporations raised $4.9 billion worth in the form of debt securities on the credit market, down from $20.5 billion in the third quarter. Insurance corporations and pension funds contributed the most to the activity in the fourth quarter. Meanwhile, issuances of debt securities by non-financial corporations amounted to $10.9 billion, led by firms of the professional, scientific and technical services industry.

Chart 2: 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 largely exceed new issuances

Net retirements of Canadian equity securities totalled $15.2 billion in the fourth quarter, the largest amount since the second quarter of 2023. Financial corporations contributed the most to the activity. Overall, the market value of outstanding Canadian equity securities was up $138.9 billion to $4,762.3 billion at the end of the fourth quarter of 2024. Canadian share prices, as measured by the Standard and Poor's/Toronto Stock Exchange composite index, were up by 3.0% in the fourth quarter.

Chart 3: Canadian equity securities issues by sector, net issuances

Note: Net issuances denote new issuances less retirements.

Source: Table 36-10-0621-01.

Canadian holdings of foreign securities increase

Canadian holdings of foreign securities, in market value terms, reached $4,173.5 billion at the end of the fourth quarter, up $210.1 billion from the previous quarter. Holdings of foreign shares stood at $3,139.6 billion, while holdings of foreign debt securities reached the $1 trillion mark ($1,033.9 billion). In comparison, the value of Canadian debt securities held by Canadian investors amounted to $3,627.1 billion at the end of 2024.

Year 2024 in review

Borrowing activities rising

On an annual basis, Canadian entities issued a net $262.1 billion in the form of debt securities in 2024, up from $188.3 billion in 2023. Government borrowing activity was strong in 2024, standing at $168.0 billion, compared with $88.6 billion in 2023. Meanwhile, borrowings by the financial corporations sector slowed from $69.9 billion in 2023 to $21.7 billion in 2024. Canadian chartered banks repaid a net $53.9 billion of debt securities, largely contributing to the slowdown in borrowings.

The Bank of Canada reduced its policy rate by 175 basis points in 2024, compared with an increase of 75 basis point in 2023.

Net retirements of Canadian shares in 2024

Retirements of Canadian equity securities exceeded new issuances by $36.1 billion in 2024, a level comparable to that in 2023. The activity in both years was attributable to firms buying back their shares, as well as merger and acquisition activities. Overall, the market value of outstanding Canadian equity securities was up $765.1 billion in 2024. Canadian share prices, as measured by Standard and Poor's/Toronto Stock Exchange composite index, increased by 18.0% in 2024.

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