Canada Structured Products Issuance Reaches CAD 82.5Bn (+26.1% YoY) as December Closes at CAD 8.2Bn, In Line with Forecast
Key Highlights
• Product Split: Notes CAD 52.4Bn (+35.4% YoY) vs. GICs CAD 30.0Bn (+13.1% YoY), confirming strong outperformance of market-linked products.
• Monthly Dynamics: December notes issuance reached a record CAD 5.70Bn (+67% YoY), driven by PAR Notes (CAD 4.86Bn) and PPNs (CAD 0.84Bn); GICs declined to CAD 2.5Bn (-13.0% YoY).
• Structure Mix: Single-underlying products dominate at 74.5%, vs. 25.1% for baskets, indicating stable structuring preferences.
• Product Mix: Capital-protected products lead with 46.4%, followed by Income (35.9%) and Growth (17.7%), reflecting a protection-heavy market.
Market Overview
December confirms a strong finish to a stellar year for the Canadian structured products market, with issuance reaching CAD 82.5Bn (+26.1% YoY) and monthly volumes (CAD 8.2Bn) in line with expectations. Growth was primarily driven by exceptional expansion in Structured Notes (+35.4% YoY), significantly outpacing GIC growth (+13.1%), reinforcing the structural shift toward market-linked products. The market maintained a protection-heavy allocation, with capital-protected products (46.4%) leading, while still supporting robust demand for income and growth strategies. Structurally, single-underlying products (74.5%) remained dominant, reflecting consistent investor preferences for simplified exposures. The market continues to be equity-driven, with equity indices (67.0%) anchoring issuance, supported by strong absolute growth. Payoff structures remain concentrated in Barrier Phoenix and Capped Protected Participation, highlighting the dominance of participation-based and yield-enhancing strategies. The emergence of indices such as SOLCD265, alongside the decline of legacy underlyings, underscores ongoing evolution in underlying selection. Overall, 2025 reflects a robust expansion phase, combining strong issuance growth, record monthly activity, and stable structural trends, supported by favorable market conditions and sustained investor demand.
Methodology & Notes
This report is based on SPi’s proprietary database of structured products distributed in Canada. Figures reflect best-effort estimates based on available market data at the time of publication.
Disclaimers
Data Disclaimer (Best Effort / Completeness)
The information presented in this report is based on data collected from a variety of public and proprietary sources. While reasonable care has been taken to ensure accuracy, the data may be incomplete, subject to revisions, or may not capture the entirety of the market. SPi makes no representation or warranty, express or implied, as to the accuracy, completeness, or timeliness of the information.
General Disclaimer
This document is provided for informational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell any financial instrument or to adopt any investment strategy. The views expressed are those of SPi at the date of publication and are subject to change without notice. Past performance is not indicative of future results.
SPi accepts no liability for any loss arising from the use of this report or its contents.
