Download Canada`s international transactions in securities

Canada's international transactions in
securities, October 2016
Released at 8:30 a.m. Eastern time in The Daily, Friday, December 16, 2016
Foreign acquisitions of Canadian securities amounted to $15.8 billion in October, mainly Canadian corporate debt
securities. At the same time, Canadian investors added $2.1 billion of foreign securities to their holdings, led by
acquisitions of US corporate instruments.
Foreign investment in Canadian securities increases
Foreign acquisitions of Canadian securities reached $15.8 billion in October, above the monthly average investment
of $13.7 billion from January to September. The activity was mainly concentrated in Canadian debt securities issued
by private corporations, both short- and long-term instruments.
Chart 1
Foreign investment in Canadian securities
billions of dollars
35
30
25
20
15
10
5
0
-5
-10
-15
-20
Oct.
2012
2013
Money market instruments
2014
2015
Oct.
2016
Bonds
Equity and investment fund shares
Source(s): CANSIM table 376-0131.
Non-resident investors resumed their acquisitions in the Canadian money market by adding $7.7 billion worth to
their holdings in October, following a $5.4 billion divestment in September. Foreign acquisitions of private corporate
paper accounted for the bulk of the investment, reaching a record $6.8 billion, mainly paper denominated in foreign
currencies. Canadian short-term interest rates were down slightly and the Canadian dollar depreciated against its
US counterpart by 1.7 US cents in the month.
The Daily, Friday, December 16, 2016
Foreign investment in Canadian bonds slowed to $6.3 billion in October. Foreign acquisitions of Canadian private
corporate bonds amounted to $5.0 billion, mainly new issues denominated in foreign currencies. This followed an
investment of $11.1 billion in these instruments in September.
Non-resident investors acquired $2.1 billion of government bonds, largely purchases on the secondary market. A
reduction in foreign holdings of federal government enterprise bonds moderated the overall investment. Canadian
long-term interest rates were up by 17 basis points in October, following five consecutive months of decline.
Foreign investors acquired $1.8 billion of Canadian equities in October, following a $5.7 billion investment in
September. Issuance of new Canadian shares to non-resident portfolio investors, resulting from cross-border
mergers and acquisitions, led the activity during the month. Canadian stock prices edged up in October.
Canadian investment in foreign securities focuses on US instruments
Canadian investors added $2.1 billion of foreign securities to their holdings in October, led by acquisitions of US
corporate securities.
Canadian acquisitions of foreign shares amounted to $1.7 billion and reflected a $3.2 billion purchase of US shares,
partially offset by a $1.5 billion sale of non-US foreign shares. US stock prices were down by 1.9% in October.
Canadian investment in foreign debt securities totalled $433 million in October, following two months of divestment.
The investment activity was mainly in US corporate bonds and, to a lesser extent, non-US foreign bonds. A
$3.1 billion reduction in US government bonds moderated the overall investment in the month. This was the third
consecutive month of divestment in US government bonds. US short-term interest rates were up by 4 basis points
and long-term interest rates were up by 13 basis points in the month.
Chart 2
Canadian investment in foreign securities
billions of dollars
20
15
10
5
0
-5
-10
-15
-20
Oct.
2012
2013
Debt securities
2014
2015
Equity and investment fund shares
Source(s): CANSIM table 376-0131.
2
Component of Statistics Canada catalogue no. 11-001-X
Oct.
2016
The Daily, Friday, December 16, 2016
Note to readers
The data series on international transactions in securities covers portfolio transactions in equity and investment fund shares, bonds and
money market instruments for both Canadian and foreign issues. This activity excludes transactions in equity and debt instruments
between affiliated enterprises, which are classified as foreign direct investment in the international accounts.
Equity and investment fund shares include common and preferred equities as well as units/shares of investment funds.
Debt securities include bonds and money market instruments.
Bonds have an original term to maturity of more than one year.
Money market instruments have an original term to maturity of one year or less.
Government of Canada paper includes Treasury bills and US-dollar Canada bills.
All values in this release are net transactions unless otherwise stated.
Next release
Data on Canada's international transactions in securities for November 2016 will be released on January 19, 2017.
Table 1
Canada's international transactions in securities
August
2016
September
2016
October
2016
January to
October 2015
January to
October 2016
millions of dollars
Foreign investment in Canadian
securities
Debt securities
Money market instruments
Governments
Federal government
Other governments
Corporations
Government business enterprises
Private corporations
Bonds
Governments
Federal government
Other governments
Corporations
Government business enterprises
Private corporations
Equity and investment fund shares
12,764
10,160
1,165
731
947
-216
433
-119
552
8,995
2,025
254
1,772
6,970
3,875
3,096
2,604
11,790
6,102
-5,399
-159
-167
8
-5,240
-1,522
-3,718
11,501
-1,689
268
-1,957
13,190
2,107
11,083
5,688
15,754
13,946
7,691
620
26
594
7,071
314
6,758
6,254
2,148
1,135
1,013
4,107
-850
4,956
1,808
100,771
92,095
5,038
-5,086
-2,919
-2,168
10,126
-472
10,599
87,055
24,163
33,615
-9,452
62,893
16,418
46,476
8,677
139,180
100,967
6,070
-4,393
-3,212
-1,182
10,464
-397
10,862
94,895
25,816
17,178
8,637
69,081
10,560
58,522
38,211
Canadian investment in foreign
securities
Debt securities
Money market instruments
Bonds
Equity and investment fund shares
1,600
-1,669
-181
-1,488
3,269
1,818
-5,024
352
-5,376
6,843
2,136
433
562
-129
1,703
26,408
18,574
-1,823
20,397
7,832
15,180
3,610
86
3,523
11,572
Note(s): In this table, a positive value denotes an increase in investment and a negative value denotes a decrease in investment. Transactions are recorded on a
net basis. Figures may not add up to totals as a result of rounding.
Source(s): CANSIM table 376-0131.
Component of Statistics Canada catalogue no. 11-001-X
3
The Daily, Friday, December 16, 2016
Available in CANSIM: tables 376-0131 to 376-0138.
Definitions, data sources and methods: survey number 1535.
For more information, contact us (toll-free 1-800-263-1136; 514-283-8300;
[email protected]).
To enquire about the concepts, methods or data quality of this release, contact Lauren Dong (613-668-3140;
[email protected]), International Accounts and Trade Division.
4
Component of Statistics Canada catalogue no. 11-001-X