Foreign Investors Cut Canadian Securities in April

Foreign investors reduced their holdings of Canadian securities by C$9.36 billion in April 2025, marking the third consecutive month of divestment, following a C$4.2 billion decline in March.

The reduction was led by a C$25.1 billion outflow from Canadian bonds—the largest monthly divestment since December 2018—driven by maturing bonds, especially those with original maturities between 2 and 10 years.

Private corporate bonds saw the steepest outflow (-C$17.3 billion), followed by provincial (-C$7.1 billion) and federal bonds (-C$2.5 billion).

In contrast, foreign investors added money market instruments and equities.

The April pullback followed a strong C$52.3 billion bond investment in Q1, fueled by new private corporate debt issuance.

(editado)