Maple Bonds

Maple Bonds are bonds denominated in Canadian dollars issued by foreign issuers in the domestic market of Canada.
A Maple Bond is named after the national symbol of Canada, the maple leaf.

For Canada, this type of foreign bond is attractive because there is a lack of market supply to cover excess funds.
The limited size of the credit market in Canada compels investors to diversify their portfolios and increase returns by investing in other markets.
The repeal of the Foreign Property Rule in 2005 (FPR) gave the largest boost to the market of Maple Bonds.

Similar to other foreign bonds such as the Kangaroo, Samurai, and PandaBonds, Maple Bonds allow investors to reduce foreign exchange risk by investing in foreign papers.

Maple Bond issuers are divided into categories:
● Sovereign guaranteed, KfW;
● Sovereign agencies, Bank Nederlandse Gemeenten;
● Supranational organizations, The Inter-American Development Bank;
● Financial, Bank of America;
● Corporate, Aviva Plc;

The main market issuers are European, especially from Germany, the United Kingdom, Norway, the Netherlands, and Ireland. Typically, Maple Bonds are rated at least "A" and are traded with a yield higher than similar domestic securities.