Foreigners Reduce Holdings of Canadian Securities

Foreign investors purchased C$46.7 billion of Canadian securities in January 2026, rebounding from a C$5.8 billion disinvestment in December. The rebound was led by record foreign investment in Canadian bonds of C$51.3 billion, which was partially offset by a C$10.2 billion divestment in money market instruments. Foreign bond purchases were driven by unprecedented corporate bond investment of C$31.5 billion, largely from new euro-denominated issuances by chartered banks. Federal government bonds attracted C$12.9 billion in foreign investment following record C$33.6 billion inflows in Q4 2025. Provincial bonds saw C$6.8 billion in foreign purchases, the highest since May 2025. Foreign investors also increased Canadian equity holdings by C$5.7 billion. Non-resident investors continued reducing money market exposure with a C$10.2 billion divestment.

Foreign investors reduced their holdings of Canadian securities by C$5.6 billion in December 2025, reversing a C$16.0 billion increase in November. The change was led by a C$17.6 billion net divestment in debt securities and a C$12.07 billion net increase in equities. Non-resident investors sold C$11.12 billion of Canadian bonds, with corporate bonds showing a C$22.53 billion divestment partially offset by purchases of government bonds (+C$11.41 billion). Equities recorded a C$12.07 billion gain, with acquisitions targeting shares from all industries except the banking sector. On the other side, Canadian investors acquired C$13.06 billion of foreign securities, led by purchases of US shares.

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.