Heating Up for a Record High



    TORONTO, Jan. 30 /CNW/ - Third quarter results and analysis were released
today in the Investment Industry Association of Canada's quarterly report,
Review of Debt New Issues and Trading. While trading was more tepid at
$1.5 trillion in the third quarter, down 24.9 per cent quarter-over-quarter
and 3.3 per cent year-over-year, debt issuance sizzled. Debt financings in
Canada heated up to the second highest on record at $45.7 billion, an increase
of 20.8 per cent quarter-over-quarter and 23.2 per cent year-over-year.
    "It's going to be another red-hot year for the debt market," said Ian
Russell, President and CEO of the Investment Industry Association of Canada,
"Solid fundamentals, relatively low interest rates and the proliferation in
Maple bonds have helped ignite Canada's growing corporate market. We're going
to see that continue into 2007."
    The solid third quarter followed a strong first half for the debt market.
In the first nine months of 2006, total debt trading was $5.1 trillion, up
15.7 per cent from the same period a year ago while debt financings, at
$127.8 billion for the first three quarters, were up a more modest 8.3 per
cent. Canada's debt market in 2006 will likely break the financing record of
$165 billion in 2004 and trading high of $5.9 trillion in 2005.
    Looking out, the Canadian debt market is not expected to cool down
significantly from the record levels in 2006. While the search for higher
yields in foreign markets and widening credit spreads are growing concerns in
2007, there is enough positive momentum in the market that should help offset
these negatives.
    Electronic copies of the report, which includes our special feature on
debt market transparency and operational changes affecting the debt market are
available at: http://www.iiac.ca/en/research/debtReview.php

    The Investment Industry Association of Canada (IIAC), formerly the
industry association arm of the Investment Dealers Association of Canada
(IDA), advances the position of the Canadian investment industry on regulatory
and public policy issues. As the professional association for the industry,
the Investment Industry Association has a mandate to promote efficient, fair
and competitive capital markets for Canada while helping its member firms
across the country succeed in the industry.





For further information:

For further information: Annie Côté-Kennedy, Investment Industry
Association of Canada, (416) 687-5474, acotekennedy@iiac.ca

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Investment Industry Association of Canada (IIAC)

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