Municipal issuance continued at a steady pace in 2017 with ~C$5.2 billion of supply, 6% higher than the C$4.9 billion issued in 2016 and remains a core part of overall public sector borrowing. Further, municipal debt offers investors the opportunity to gain exposure to local government debt (AA to AAA-rated) at a spread pickup to provincial debt.
This report provides a review of Canadian municipal issuance trends and market developments in 2017 along with an overview of recent municipal transactions, investment highlights, issuance trends, ratings profiles, secondary trading statistics and relative pricing dynamics. It also includes a comparison between Canadian and US municipal bonds and highlights recent Green Bond issuance by Canadian municipalities.