Statistics Canada has published a new set of quarterly debt statistics to help improve monitoring of global risks and threats to financial stability, the federal government agency announced Tuesday.
Starting with data for the third quarter (Q3 2018), two new reports include detailed information by net transactions and positions on Canadian debt issues by sector, currency and maturity. The reports aims to address the call from global policymakers for better market data in the wake of the global financial crisis, known as the G20 Data Gaps Initiative II.
“The goal of the initiative is to ensure the financial sector, governments, businesses and citizens have the necessary information to monitor and react to the build-up of financial risk in the domestic and global economy,” says StatsCan in a news release. It aims to encourage reporting of increasingly detailed statistics by 2021.
The value of debt securities issued by Canadian corporations and governments was $4.2 trillion at the end of Q3 2018, StatsCan says, which is up slightly from Q2 2018. “The growth was led by net issuances of financial corporate bonds. A decline in debt securities of non-financial corporations moderated the overall increase in the quarter,” it says.
Financial firms account for 45% of total debt outstanding at the end of Q3 2018, with governments contributing 37%, and non-financials representing just 17% of total outstanding debt. The value of debt issued by financials increased by $25.8 billion in Q3 2018 to $1.9 trillion, primarily due to several issues by Canadian banks.
In terms of currency, the increase in the value of Canadian debt came entirely in Canadian dollar-denominated debt, StatsCan says, while foreign currency debt declined. Non-financial corporates are the most exposed to foreign currencies, with foreign debt representing 41% of their total debt outstanding.
As for maturities, approximately 20% of Canadian debt is due within a year. This includes both short-term securities and long-term debt with a remaining maturity of less than a year.
“This measure provides insights into the importance of refinancing risks faced by issuing sectors,” StatsCan says.