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Securities statistics, second quarter 2023

Released: 2023-09-07

Canadian governments and corporations borrowed a net $80.0 billion of funds in the form of debt securities in the second quarter, the ninth consecutive quarter in which new issuances exceeded retirements. The financing activity in the second quarter was led by the government sector.

The total book value of outstanding Canadian debt securities reached $5,612.0 billion at the end of the second quarter, up $50.6 billion from the previous quarter. This increase reflected net borrowings moderated by the downward revaluation from the appreciation of the Canadian dollar against the US dollar and the euro. Nearly one-quarter (23.6%) of the total stock of debt securities was denominated in US dollars or in euros at the end of June.

Chart 1  Chart 1: Debt securities issues by sector, stocks at market value
Debt securities issues by sector, stocks at market value

Net issuances of debt securities led by the government sector

The government sector issued a net $53.7 billion of debt securities in the second quarter, following retirements of $27.4 billion in the previous quarter. Specifically, net issuances of short-term debt securities totalled $40.3 billion, the largest amount since the second quarter of 2020, when a record $260.9 billion of money market instruments were issued at the onset of the COVID-19 pandemic. Both the federal ($24.5 billion) and the provincial and territorial ($16.0 billion) governments contributed to the activity in the second quarter of 2023.

Chart 2  Chart 2: Canadian debt securities issues by sector, net issuances
Canadian debt securities issues by sector, net issuances

Canadian financial corporations were net borrowers of funds in the second quarter, raising $21.4 billion worth in the form of debt securities in the credit market. Overall, issuances abroad were moderated by retirements in Canada. Net issuances by Canadian chartered banks totalled $9.3 billion, the lowest level in two years.

In the second quarter, the Bank of Canada raised its policy interest rate for a second time in 2023, and Canadian short-term interest rates rose to their highest levels since the fourth quarter of 2000.

Retirements of Canadian shares continue to exceed new issuances

Net retirements of Canadian equity securities totalled $17.3 billion in the second quarter of 2023, a sixth consecutive quarter in which retirements exceeded new issuances. Non-financial corporations contributed the most to the net retirement activity over the past six quarters due to share buybacks and mergers and acquisitions. The market value of outstanding Canadian equity securities edged down by 0.4% to $3,855.7 billion at the end of the second quarter.

Chart 3  Chart 3: Canadian equity securities issues by sector, net issuances
Canadian equity securities issues by sector, net issuances




  Note to readers

This quarterly release, available about 70 days after the reference period, includes information on debt securities issues by sector, currency, maturity, type of interest rate and market of issuance, as well as by the economic sectors issuing debt securities in relation with the sectors investing in these instruments. It also includes information on Canadian equity securities by sector and industry. Statistics on Canadian portfolio investment abroad, previously released with Canada's international investment position, are now available with this release. Canadian holdings of foreign securities by type of securities, by currency of denomination, by country of issuer of these securities, and by sector of non-resident issuer are available.

Definitions and concepts used are consistent with the recommendations of the Handbook on Securities Statistics, an internationally agreed-upon framework for classifying securities instruments. Data are accessible through an easy-to-use and flexible visualization tool. The tool includes dynamic cross-tables that allow users to look at the dataset from a variety of dimensions, as well as other visualization layers that illustrate different characteristics of the data in the form of interactive tables and charts.

Definitions

Securities statistics cover issuances and holdings of negotiable financial instruments. Securities include debt instruments designed to be traded in financial markets, such as treasury bills, commercial paper and bonds, as well as equity instruments such as listed shares.

The book value of a debt instrument reflects the value of the debt at creation, and any subsequent economic flows, such as transactions (e.g., repayment of principal), valuation changes (independent of changes in its market price) and other changes. The book value is composed of the outstanding principal amount plus any accrued interest. The market value reflects the value at which securities are acquired or disposed of in transactions between willing parties, excluding commissions, fees and taxes.

Currency valuation

The value of securities denominated in foreign currency is converted to Canadian dollars at the end of each period. When the Canadian dollar appreciates in value, the restatement of the value of these instruments in Canadian dollars lowers the recorded value. The opposite is true when the Canadian dollar depreciates.

Products

The data visualization product "Securities statistics," part of the series Statistics Canada – Data Visualization Products (Catalogue number71-607-X), is available online.

The document "Enhancing Canada's statistics on securities," part of Latest Developments in the Canadian Economic Accounts (Catalogue number13-605-X), is also available.

The Economic accounts statistics portal, accessible from the Subjects module of our website, features an up-to-date portrait of national and provincial economies and their structure.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).

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