Equity offering volume has rebounded to record high levels in the United States and Canada, National Bank Financial reports.

In a new research note. NBF observes that a year ago, equity offerings (both initial and secondary issues) “slowed to a crawl in the midst of the global credit crisis.”

In Canada, it reports, the period from August to October saw the lowest level of equity offerings in nearly a decade (less than $400 million/month). The situation was similar in the U.S., where there were no IPOs at all in October and December (the first time that has happened since September 2001).

However, now, the firm observes, “Things have improved dramatically in recent months on the back of forceful government actions that have succeeded in reassuring investors about the economic outlook.”

“Investors’ risk tolerance has sharply increased over the past six months as evidenced by a strong demand for equity offerings,” it says, reporting that “Over the period, equity offerings totalled $20.4 billion in Canada, and $131 billion in the U.S., a new record high in both cases.”

Additionally, it says that investors have been handsomely rewarded for taking more risk. “Since the beginning of the year, the Bloomberg IPO index (which tracks last 12 month’s U.S. IPOs) gained 39.4% while the S&P 500 composite advanced 21.7%.”

IE