The Maple bond market has experienced explosive growth since the federal government removed foreign investment limits, according to a report.
Made in Canada: The Maple Bond Market, a report by the Investment Industry Association of Canada(IIAC), finds that the expected value of Maple bonds to be issued in 2007 will exceed $40 billion—about 50% of all non-government issuance.
“For many institutional investors, Maples bonds are attractive investments as they are highly rated and allow investors to diversify geographically without incurring currency risk,” says Barbara Amsden, director, capital markets at IIAC.
However, she adds that the Maple bond market still has some regulatory and cost impediments to overcome.
To read the report, click here.
For more about Maple bonds, click here to read Maples Are Growing from the May issue of Benefits Canada.
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