Canada Structured Products Market Grows +12.4% YoY as Notes Issuance Surges and Equity Exposure Dominates
Key Highlights
• Product Split: Structured Notes reached CAD 3.29Bn (+4.9% MoM, +45.7% YoY), while GICs totalled CAD 2.72Bn (-12% YoY), reflecting divergence between market-linked and deposit products.
• Structure Mix: Single-underlying products remain dominant at 76.4% YTD, vs. 23.4% for baskets, confirming preference for simpler structures.
• Product Mix: Capital-protected products lead with 50.1% share, though down -10ppt YoY, indicating gradual rotation toward higher-risk structures.
• Underlying Trends: Equity indices dominate at 70.8%, with single stocks at 22.7%, both increasing vs. 2024, highlighting a strong shift toward equity-linked exposure.
• Payoff Preferences: Capped Protected Participation regained leadership (34.2%), followed by Barrier Phoenix (31.2%), reflecting balanced demand between protection and yield.
• Diversification: Protected Digital Plus, Protected Participation, and diversified payoffs each account for 4.3%, indicating moderate product dispersion.
Market Overview
February data highlights a solid expansion in the Canadian structured products market (+12.4% YoY), driven primarily by strong growth in Structured Notes (+45.7% YoY), which continues to outpace GIC issuance. The market remains heavily equity-driven, with equity indices (70.8%) and single stocks (22.7%) both gaining share, signaling increased investor confidence in equity markets. While capital-protected products still dominate (50.1%), their declining share (-10ppt YoY) suggests a gradual shift toward higher-risk, higher-return structures. This is further supported by the resurgence of Capped Protected Participation (34.2%) and sustained strength in Barrier Phoenix structures (31.2%), highlighting a balanced demand between capital preservation and yield enhancement. Structurally, the continued dominance of single-underlying products (76.4%) reinforces the Canadian market’s preference for simplicity over complex multi-asset exposure. Overall, February reflects a constructive market environment, characterized by strong note issuance, increasing equity exposure, and a measured rotation toward more growth-oriented structures.
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.
