4 comments — live from bluesky

TRIFAN · 4 · 22h ago
This was an illuminating conversation. Canadians need to stand on guard.
good thing there's been such a huge influx of foreign capital buying canadian bonds to the tune of a quarter trillion dollars and counting this year
Steffani Cameron 🇨🇦 · 1 · 1d ago
how does that figure into this? to what end?
the bond buying spree is not boosting the CAD due to it being bonds issued in non-CAD currency. a huge amount of provincial and federal debt is being bought while investment in equities is flat, and without confidence in the CAD. we have record capital inflow, but it's /all/ going to bonds.
this could mean - nothing, total coincidence - foreign investors are gambling on an alberta separation - foreign investors are eating up as much debt as we can issue in advance of a separation
hedge funds have been increasingly scooping up bonds and are now at about 40% of purchases. one of the risks with this is that those funds rely on repo markets for leverage, so if a separation occurs, the funds dump the bonds as a safety net to remain liquid - draining liquidity from everywhere else
this /could/ be an indicator that hedge fund managers and foreign investment firms predict a separation and are building up a store of bonds in advance to shield themselves from the market disruption this would probably cause. the CAD would undoubtedly plummet
or, they just predict a market crash like has been predicted since forever and are hedging against that. hard to say but also hard to ignore given the turmoil a separation would cause anyway here's the statscan chart / data. $163.9 billion net inflow on government bonds may 2025 - 2026
🎯 Just wait for the false flag operations “Separatists harmed in attack, Canadians burn down couple of their houses, etc” Pedo comes to the rescue Stay alert 🍁
Every time, it goes back to the same roots. Brexit, too.