Canada Structured Products Issuance Reaches CAD 58.2Bn (+27.8% YoY) as Strong Notes Drive Continued Expansion
Key Highlights
• Product Split: Structured Notes reached CAD 4.5Bn (+57% YoY), while GICs declined to CAD 1.2Bn (-13.8% YoY), reinforcing divergence across segments.
• YTD Momentum: Volumes reached CAD 58.2Bn (+27.8% YoY); Structured Notes continue to lead growth with +39.2% YoY expansion.
• Quarterly Trends: Q3 volumes +28.6% YoY, but flat vs. Q2 (-0.2% QoQ), as GIC weakness offset PAR Notes growth.
• Structure Mix: Single-underlying products dominate at 75.3%, vs. 24.5% for baskets, indicating stable structuring trends.
• Product Mix: Capital-protected products lead with 47.5%, followed by Income (35.3%, +48.1% YoY) and Growth (~17.2%, +64.4% YoY).
• Underlying Trends: Equity indices dominate at 67.7%, followed by hybrids (12.3%), single stocks (10.8%), and rates (6.4%).
• Additional Trends: Fixed-rate products represent 6.7%; roll-over speed increased to 3.6%, the highest level since February.
Market Overview
September data confirms a strong expansion phase in the Canadian structured products market, with year-to-date issuance reaching CAD 58.2Bn (+27.8% YoY), driven by continued strength in Structured Notes (+39.2% YoY). While Q3 volumes grew significantly YoY (+28.6%), they remained flat sequentially, reflecting the ongoing drag from weaker GIC issuance. The market continues to exhibit a balanced product allocation, with capital-protected products (47.5%) leading, while income (+48.1% YoY) and growth (+64.4% YoY) segments show strong acceleration, indicating broad-based demand across risk profiles. Structurally, single-underlying products (75.3%) remain dominant, though basket usage remains stable. The market retains a strong equity bias, with equity indices (67.7%) driving issuance, complemented by a growing role for hybrid structures (12.3%). Payoff preferences remain concentrated in Barrier Phoenix and Capped Protected Participation, reinforcing the dominance of participation-based and yield-enhancing strategies. The increase in roll-over speed (3.6%) further suggests heightened reinvestment activity, supporting sustained issuance levels. Overall, September reflects a robust and expanding market, with strong note issuance offsetting cyclical GIC weakness and driving continued growth momentum.
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.
