FX.co ★ Foreigners Reduce Holdings of Canadian Securities

Foreign investors reduced their holdings of Canadian securities by C$5.6 billion in December 2025, reversing a C$16.0 billion increase recorded in November. This shift was driven by a net divestment of C$17.6 billion in debt securities, partly offset by a net increase of C$12.07 billion in equities.

Non-resident investors sold C$11.12 billion in Canadian bonds. Within this category, there was a substantial C$22.53 billion divestment of corporate bonds, which was partially counterbalanced by net purchases of government bonds totaling C$11.41 billion.

Equities posted a net gain of C$12.07 billion, as foreign investors increased their holdings across virtually all sectors, with the notable exception of the banking industry.

In contrast, Canadian investors boosted their exposure to foreign assets, acquiring C$13.06 billion in foreign securities, led primarily by purchases of U.S. equities.