New Statistics Canada data shows that foreign investors pulled back from corporate bonds, reducing their exposure by $8.2 billion, the most since July 2020, and focused on government enterprises bonds. Investment in money market instruments fell from $19.5 billion in November to $6.7 billion in December and was mostly focused on corporate paper.
Canadian equities were not favoured by foreign investors as the S&P/TSX Composite Index lost 3.6% in the month. Their investment was just $500 million, although this was an improvement from November when they divested $8.6 billion.
The total acquisition of securities by non-resident investors was $14.4 billion, following $16.4 billion in November and $21.5 billion in October.
Meanwhile, Canadian investors eased back on their investments in foreign securities with just $3.8 billion acquired in December versus $17.6 billion in November.
After two months…
