Securities Less Attractive Between Canada, World

It appeared that buying securities internationally was not as much on the minds of Canadians and their opposite numbers offshore in April.

Figures released Monday morning by Statistics Canada revealed that Foreign investors reduced their holdings of Canadian securities by $12.8 billion in April, mainly in the form of equities. At the same time, Canadian investors marginally reduced their holdings of foreign securities.

As a result, international transactions in securities generated a net outflow of funds of $12.6 billion from the Canadian economy in April. Cross-border mergers and acquisitions activity in Canada contributed significantly to this movement of funds.

Investors beyond our borders reduced their holdings of Canadian securities by $12.8 billion in April, the largest decline since December 2018. The reduction was in Canadian equities and, to a lesser extent, debt securities.

The agency said foreign holdings of Canadian portfolio equities were down by $8.6 billion in April, the largest reduction since July 2015. The decline was mainly related to cross-border mergers and acquisitions activity in Canada.

Non-resident investors reduced their holdings of Canadian debt securities by $4.2 billion in April

The nation's number crunchers added Canadian investors reduced their holdings of foreign securities by $194 million in April, following a $1.3-billion investment in March.

Canadian holdings of foreign debt securities were down by $337 million in April, after three months of investment. Acquisitions of U.S. corporate bonds were moderated by sales of U.S. treasury instruments. US short- and long-term interest rates edged down in the month.

Canadian investment in foreign equities was $143 million in April.