That discount in international holdings got here as Canadian long-term rates of interest reached their highest ranges since December 2007.
“Non-resident buyers acquired $1.6 billion of Canadian shares in September 2023, after 9 consecutive months of divestment,” Statistics Canada reported. “Investments in shares of the manufacturing in addition to the commerce and transportation industries had been moderated by a divestment in shares of the banking sector.”
For his or her half, Canadian buyers acquired $11.6 billion of international securities, pushed overwhelmingly by a complete funding of $10.5 billion in international bonds. Non-US international bonds by Canadians noticed the very best degree of funding within the yr, amounting to $6.7 billion and primarily centered on authorities bonds.
Canadian buyers snapped up $3.8 billion in US bonds in September, virtually matching their $3.7 billion funding in US bonds the earlier month. That coincided with US long-term rates of interest reaching their highest degree since October 2007 – a timeframe of practically 16 years.
Canadian acquisition of international shares slowed to $1.7 billion within the month. Even with that, Canadian buyers ended the third quarter with $20.3 billion invested in international shares, the biggest quarterly funding since This autumn of 2021.
