The Investment Dealers Association of Canada issued today its report Review of Debt New Issues and Trading, Third Quarter 2003. The report shows a continuing strength in activity, reflecting increased government and corporate issuance.

Government of Canada gross bond issuance totalled $16.1 billion in 34 new issues, 14% higher in value compared to the same quarter last year. Trading in federal bonds totalled $1.14 trillion, an increase of 16% on a yearly basis. Real return bond trading was $3.6 billion, up 12% in value from the same period last year.

Provincial gross bond issuance totalled $5.5 billion in 64 new issues, an increase of 7% in value compared to third quarter of 2002. Trading of provincial bonds totaled $64.5 billion, decreasing 18% from a year ago.

Municipal gross bond issuance was $0.7 billion in 48 new issues, up 40% in value compared to the same quarter last year.

Corporate debt issuance was $13.1 billion, an increase of 126% over the same quarter a year ago. The most significant corporate issuers included TD Bank raising $1 billion and York Receivables Trust III offering a total of $1.5 billion in nine new issues. The Financial and Real Estate sector was the most active, accounting for 78% of the total corporate issuance. Corporate debt trading totalled $28.8 billion, up a modest 1% compared to the same quarter last year.

Trading in money market instruments was down by 7%, totalling $1.05 billion in the quarter. T-bill trading was virtually unchanged while trading of Bankers’ Acceptances and Commercial paper was down 11% and 9% respectively compared to the same quarter a year earlier.