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IPFS News Link • Canada

Canada Sees Domestic & Foreign Investors Pull Out At A Record Pace

•, By Colin

Canada has historically had a reputation as a safehaven to global investors, but those days are suddenly gone. Statistics Canada (Stat Can) released its securities trade for February. The data revealed global capital continues to flee the country's capital markets at a record pace. Even worse, domestic investors are now joining them.

Canadian Investors Flee To Foreign Securities, Sets Record For Bonds 

Canadian investors are sinking record amounts of cash into foreign markets. Investors bought $24.2 billion in foreign securities in February, after sending $7.6 billion in January. Most of the capital was sunk into foreign bonds, setting a record.

Canadian Investors Are Sinking Record Cash Into Foreign Bonds

Monthly distribution of the net flow of Canadian capital into foreign bonds. Positive numbers indicate more capital sunk into foreign bonds than withdrawn.

The US was the biggest winner of Canadian investors chasing foreign investments. In total, a record of $16.3 billion in foreign bonds were purchased in February. American bonds represented $9.1 billion of that flow. That was on top of the $9.1 billion in US equities purchased by Canadians in the month.

Foreign Investors Continue To Flee Canada, Anything But Loonies