Maple bonds may offer sweet spot for credit investors: Simon Ballard column

Canada’s financial markets proved resilient to the credit crisis and debt issued in Canadian dollars should garner strong support from investors.

Uncertainty surrounding the global sovereign debt crisis, and the subsequent heightened market volatility, has curtailed credit market activity of late and triggered sharp gyrations in spreads.

One likely outcome of this situation over the coming months, as the market stabilises, will be a greater focus on corporate credit fundamentals by investors.

The Canadian dollar Maple market could be one beneficiary of this trend over the medium term; continuing to make modest gains in terms of both