Fixed Income Quarterly—Monthly Money Trail
Page 5
deficient levels of primary supply are adversely impacting the flow of bank deposit notes in the secondary market, which is the main dietary source of international investors. Overall, we maintain our belief that numerous international investors
Chart 4: Net Foreign Investment in Canadian Securities (Quarterly)
have taken a longer-term view toward a greater weighting of the Canadian dollar and thus need to invest monies in Canadian assets.
2013 2012
2011 2010
Net Foreign Investment in Canadian Securities (Quarterly)
50 40 30 20 10
0
2009 2008
2007 2006
2005 2004
2003 2002
2001 2000
Also of note in April, foreign investment in money market
instr-u1m0 ents was $5 billion, portending a potential switch into term paper at some point in the future given the recent
demo-2n0strated preference of bonds over equities. -30
-40
Source: Statistics Canada. Table 376-0132 – International transactions in securities, portfolio transactions in Canadian and foreign securities, by type of instrument and issuer, quarterly. BMO Capital Markets
1999 1998
1997 1996
1995 1994
1993 1992
1991 1990
1989 1988
C$ Billions