Maple market bellwether of a booming Canadian bond market,
says RBC Capital Markets
Alan Greenspan is Keynote Speaker at April 25-27 RBC Capital
Markets Global Fixed Income Conference
NEW YORK, April 25, 2007 — Nearly two years
after Canada's elimination of the foreign investment limit
on Canadian pension and retirement savings funds, the "Maple
bond" market continues its dramatic growth and the larger
Canadian bond market is evolving to an open global market.
The result is accelerating change driven by investors seeking
diversification and incremental yield, globalization, shrinking
government bond supply and a myriad other factors, according
to presenters at the annual RBC Capital Markets Global Fixed
Income Conference, "The Evolution of a Global Market."
The market for Maple bonds - which are issued by non-Canadian
entities in the Canadian market and denominated in Canadian
dollars - is among the topics at the third annual conference,
which begins today and runs through Friday at the Four Seasons
Hotel in Miami. Canadian corporate, government and structured
issuers will also be prominently featured. Attendees will
include nearly 200 institutional investors and bond issuers
from the U.S., Canada, Europe and Asia.
Former Federal Reserve Chairman Alan Greenspan is the conference's
keynote speaker, with RBC President and CEO Gord Nixon scheduled
to issue the conference's opening remarks. Dr. Greenspan's
presentation is closed to the media.
"The repeal of the foreign investment limit, in July
2005, has helped spark the globalization of Canada's bond
market, bringing both opportunities and challenges to issuers
and investors alike," said Larry Bates, RBC Capital Markets
Global Head of Debt Capital Markets.
Until July 2005, Canadian pension funds and retirement savings
plans were required to have 70 percent of their assets invested
in Canada. The repeal of that limit helped the Maple bond
market grow from C$21.6 billion in 2005 to C$28.7 billion
in 2006, a 33 per cent increase. And in the first quarter
of 2007, a total of C$14.4 billion in debt was issued, putting
the market on pace to double last year's issuance.
"The growth in the Canadian debt market during the past
couple of years has far exceeded expectations," said
Bates. "Most experts never thought it would take off
as quickly as it has. We may not be completely global yet,
but we are well on our way. The evolution of the Canadian
bond market is clearly in full swing."
About RBC Capital Markets Global Fixed Income
RBC Capital Markets is the corporate and investment banking
arm of RBC. As the 14th largest debt underwriter globally,
RBC Capital Markets' global fixed income business serves over
6,000 active investors and issuers through 50 offices in 10
countries. It is a leader in project and infrastructure finance,
Sterling, and non-core dollar markets, with a growing presence
in Euros and US dollars, and the leader in U.S. Negotiated
Municipal bonds and Canadian dollars. Trading hubs in London,
New York, Sydney, Tokyo, Chicago and Toronto provide 24-hour
pricing. RBC is ranked #1 in both the Maple bond and Kangaroo
bond markets. The firm has dedicated research teams for high-yield,
emerging market and investment grade bonds in the U.S., Canada
and Europe.
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For more information, please contact:
In the U.S.:
Kevin Foster, (212) 428-6902, kevin.foster@rbccm.com
In Canada:
Katherine Gay, (416) 974-6286, katherine.gay@rbccm.com
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