The latest figures show a rebound for foreign investors in Canadian securities following a significant divestment in the previous month
Canadian bonds were the main focus for a rebound from foreign investors in April.
The latest data from Statistics Canada shows that $13.5 billion flowed into Canadian securities from abroad, following the $19.1 billion divestment seen in the previous month.
Private corporate bonds were the main driver, attracting $10.4 billion of investment mostly due to new issuances of foreign currency instruments by chartered banks.
Federal government bonds were another large rebound investment for international buyers ($8.1 billion compared to more than $11 billion divested in March), and they acquired $3.2 billion in provincial bonds.
However, the gains for bonds belied a significant pull back from Canadian equities, largely due to the retirement of shares of Canadian firms involved in merger and acquisition activities. The $8.2 billion divested was offset slightly by the purchase of shares on the secondary market.
Canadian investors
Meanwhile, Canadian investors added $2.4 billion in foreign securities to their portfolios in April.
This was the first monthly investment of 2023, following more than $28 billion divested over the previous four months, and was focused on foreign shares – mostly US – with $3.5 billion acquired.
They also sold $2.4 billion in US government bonds.
With the strong activity among foreign investors in Canadian securities, international transactions in securities generated a net inflow of funds of $11.2 billion into the Canadian economy in April.
