RBC Canadian Public Sector Borrowers Roundtable

Canada has a compelling macroeconomic story to tell. Growth has surprised on the upside, unemployment levels have been testing all-time lows, and public sector debt is low by international standards. How long this bright picture can be maintained is open to question, with inflation still running above Bank of Canada targets in spite of tighter monetary policy.

Sharp rises in interest rates have yet to filter through to the housing market, but economists have been expressing concerns about affordability in the sector. Nevertheless, although diminishing household spending power is likely to push GDP lower, the consensus appears to be that factors such as strong population growth will ensure that Canada’s expected economic downturn is mild.

Against this backdrop, it is unsurprising that local and international investor demand for exposure to Canadian public sector issuers remains strong. A number of those borrowers gathered at the RBC Capital Markets/GlobalCapital Canadian Public Sector Borrowers roundtable to shed light on their funding strategies in domestic and offshore markets.