Foreigners Increase Holdings of Canadian Securities

Foreign investors increased their holdings of Canadian securities by C$16.33 billion in November 2025, slowing from C$46.62 billion in October. The change was led by a C$23.83 billion net increase in debt securities and a C$7.50 billion net reduction in equities. Non-resident investors purchased C$23.45 billion of Canadian bonds, with private corporate bonds (+C$13.42 billion) and government bonds (+C$10.03 billion) accounting for the bulk of inflows. Equities recorded a C$7.50 billion decline, with divestments concentrated in the energy and mining sector while purchases were made in the banking sector. On the other side, Canadian investors acquired C$16.49 billion of foreign securities, reversing the C$11.58 billion divestment recorded in October.

Foreign investors increased their holdings of Canadian securities by C$46.62 billion in October 2025, the highest investment since March 2022, accelerating from C$31.32 billion in the previous month and well above the market expectations of C$21.84 billion. The surge was led by a C$34.0 billion net increase in debt securities and C$12.6 billion in equities. Non-resident investors purchased C$38.6 billion of Canadian bonds, with private corporate bonds (+C$17.8 billion) and federal government bonds (+C$16.2 billion) accounting for the bulk of inflows. Equities saw a C$12.6 billion rise, the highest monthly investment since September 2024, with acquisitions concentrated in the energy and mining and finance and insurance sectors, partially offset by divestments in trade and transportation shares. On the other side, Canadian investors trimmed C$11.6 billion of foreign securities, the largest monthly reduction since January 2023, focusing on stocks and bonds, particularly US assets.

Foreign investors increased their holdings of Canadian securities by C$31.32 billion in September 2025, gaining traction from the upwardly revised C$23.6 billion in the previous month, to mark the highest investment since April 2024. The surge was carried by a C$28.7 billion net increase in holdings of debt securities, mostly through money market instruments (C$8.5 billion) as the Bank of Canada lowered its policy rate to 2.50% in September, while net holdings of bonds rose by C$20.1 billion. Additionally, holdings of equity in Canadian companies rose by C$2.7 billion, aligned with gains in benchmark TSX indices during the month. In the meantime, Canadian investors increased their holdings in foreign financial assets by $22.1 billion.