Canada's Private Credit Exposure Tops $500 Billion

Canada's private credit boom shows no signs of slowing down, with Canadian investors and banks carrying roughly $500 billion in private credit exposure. According to a recent Bank of Canada report, this figure represents about three-quarters of the country's total private credit market.

The majority of this investment is focused outside of Canada, particularly in the United States, where private credit has become a primary source of financing for some segments. In fact, the US market has grown to nearly $1.34 trillion in size, with global markets reaching almost $2 trillion by the second quarter of 2024.

The Canadian life insurers hold just over $200 billion in private credit investments, representing about 22 percent of their invested assets. Pension funds also have an estimated $215 billion in private credit holdings, approximately 9 percent of their total invested assets.