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Canadian bank headquarters stand on Bay Street in Toronto. (Brent Lewin/Bloomberg)
Canadian bank headquarters stand on Bay Street in Toronto. (Brent Lewin/Bloomberg)

Deal activity set to flow despite shift to higher interest rates Add to ...

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The era of ultralow borrowing costs may be coming to an end in Canada but observers say the new zeitgeist is unlikely to have much of a dampening affect on the country’s lively mergers and acquisitions (M&A) market.

Rock-bottom rates installed during the financial crisis helped fuel a bull run in equities as investors poured into the markets, sending stocks to historic highs. Canadian companies took full advantage, with many using a combination of their shares and cheap credit to pay for blockbuster deals.

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