Modest net outflow recorded as domestic investors ramp up foreign security purchases in latest official stats
Non-resident investors continued to add to their holdings of Canadian assets while domestic investors accelerated their purchases of overseas securities according to newly-released stats.
Statistics Canada’s data on international transactions in securities reveals that foreign investors bought $16.3 billion of Canadian securities in November, a sharp deceleration from the $46.6 billion invested the previous month.
Much of this inflow reflected demand for debt instruments, with $23.8 billion of Canadian debt securities acquired overall. Non-resident purchases were concentrated in private corporate bonds and money market instruments, each contributing equally to the total.
Activity in government bonds was mixed as foreign investors added to holdings of newly issued provincial and federal bonds but reduced exposure to existing government paper in secondary markets. This pattern suggests continued appetite for Canadian fixed income, paired with selective repositioning within the debt market.
In contrast to the demand for debt, foreign holdings of Canadian equity securities fell by $7.5 billion during the month, reversing October’s equity inflows. The reduction was driven by secondary market sales and corporate retirements. Energy and mining companies experienced most of the pullback, while banking shares saw modest offsetting purchases.
On the domestic side, Canadian investors were net buyers of foreign assets in November, acquiring $16.5 billion of overseas securities after shedding holdings in October. Offshore investment was dominated by equities, led by purchases of non-US shares, particularly in European markets, reaching the highest monthly level since April 2022. Canadian investors also added to US equities, focusing on large-cap technology companies.
Canadian investment in foreign debt was more modest at $1.3 billion, largely outside the United States, even as long-term US interest rates moved higher.
Combined, these cross-border flows produced a modest net outflow of $161 million in November, following a substantial net inflow in October.
