Foreign acquisitions of Canadian securities reached $15.8 billion in October

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.

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.

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.