New issue activity in Canadian debt markets rose in 2024, while equity issuance dropped, according to new data from LSEG Data & Analytics.
For the year, debt issuance was up 20%, with total proceeds reaching $263.6 billion. Deal volume was also up 10% from the previous year, LSEG reported.
While government debt accounted for the lion’s share of new issue activity ($157.4 billion worth), growth was stronger in corporate debt. Issuance rose 40% year-over-year in that segment, compared with a 12% rise in government issuance.
Among corporates, the financial sector led the way in new issue activity, the firm reported — representing 18.1% of total corporate debt activity, followed by the energy and power sector with a 12.7% share.
At the same time, equity issuance was down 9% in 2024 to $15.3 billion, LSEG said. Deal volume slipped 5% from last year.
The materials sector drove equity issuance in 2024, accounting for almost half (47.1%) of deal activity. The energy sector came second with a 17% market share and the industrials sector ranked third at 7.9%.
RBC Capital Markets maintained its hold atop the underwriter rankings, leading the overall league tables for both debt and equity.
According to LSEG, RBC ranked first in Canadian debt with a 20.9% market share, followed by TD Securities at 18%, and CIBC World Markets at 15.9%. BMO Capital Markets edged out National Bank Financial for fourth place, dropping Scotiabank to sixth spot in 2024 from fourth place in 2023.
RBC also took over the top of the equity underwriter rankings, with a 19.3% market share — an increase of 5.2 percentage points from 2023 — pushing BMO down to second place.
National Bank jumped up to third place in 2024, from sixth spot in 2023, LSEG said. Scotiabank held onto fourth place in the rankings, while Canaccord Genuity took fifth place, up from ninth in 2023. TD slipped to sixth place from fourth spot the previous year.
While CIBC fell to eighth place in the overall equity rankings, it led the league tables for initial public offerings and retail structured products, LSEG reported.