Trends in Issuance: Underlying Factors and Implications

Abstract

Trends in debt issuance have changed significantly over the past decade, both prior to the financial crisis and subsequently. This article provides an update on these trends in Canada relative to those in other capital markets and, where possible, analyzes the impact of the crisis on Canadian corporate issuance. The author examines trends in capital markets in Canada and other regions over the past ten years, focusing on three areas: the issuance of financial and non-financial corporate bonds, the issuance of financial and non-financial corporate equity, and securitization. The increased use of innovative and riskier financing prior to the crisis was less pronounced in Canada, and future refinancing needs are more in line with historical issuance levels.