Canada Attracts Record Foreign Investment Without Need for Carney Summit

Canada's appeal to foreign investors is evident in record-breaking figures of billions pouring into the country. According to National Bank of Canada's Taylor Schleich and Warren Lovely, by July this year non-residents had accumulated a record $179 billion in Canadian securities.

This marks a significant turnaround from last year when foreigners stopped buying due to trade uncertainty. Now they're piling in, with Canadians also being net buyers of foreign portfolio securities, resulting in 'a massive swing in net portfolio flows,' said the strategists.

Foreigners are most interested in Canadian bonds, accumulating over $210 billion by July, a new record high. Government of Canada bonds are particularly popular, with foreigners buying over $100 billion, almost twice the increase in the federal bond stock.

This has pushed the foreign-held share of the GoC bond market above 46%, a new record high. BMO Capital Markets chief economist Douglas Porter notes that this 'represents a nod of confidence in Canada' and helps keep government borrowing costs down.