Maple bonds provide Canadian institutional investors with greater opportunity



    TORONTO, Nov. 5 /CNW/ - The Maple bond market has experienced explosive
growth, since the Government removed the limits on foreign investment for
pension and retirement funds in 2005. The expected value of Maple bonds to be
issued in 2007 exceeds $40 billion - about 50 per cent of all non-government
issuance. The Investment Industry Association of Canada (IIAC) released Made
in Canada: The Maple Bond Market, which explores the benefits of this
burgeoning market and what the IIAC has been doing to remove impediments to
further growth.
    "For many institutional investors, Maple bonds are attractive investments
as they are highly rated and allow investors to diversify geographically
without incurring currency risk," states Barbara Amsden, Director, Capital
Markets, IIAC. She continued: "However, the Maple bond market still has some
regulatory and cost impediments to overcome. As the member association for the
investment industry, we are working to ensure the market continues to grow to
better meet the needs of Canadian investors."
    The Maple bond market benefits both the investor and the issuer. For
issuers, they provide a new funding alternative to complement their current
sources at lower cost. For investors, Maples provide security, as all Maples
to date are investment grade debt, and portfolio diversification. As the
selection of Maples increases, we can expect to see added holdings in pension
plans which will share the diversification and other benefits with their plan
participants.
    For more information on Maple Bonds and to read Made in Canada: The Maple
Bond Market visit www.iiac.ca.

    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: Katie O'Dell, Public Affairs Consultant, (416)
687-5478, kodell@iiac.ca

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Investment Industry Association of Canada (IIAC)

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