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Big drop in bank borrowing hits Canadian market

This year is shaping up to be another solid year for debt issuance, aided by a recent drop in bond yields. However, it could be a spectacular one, if only the banks would resume borrowing at a torrid pace.

Since January, roughly $44-billion of new debt has been sold in Canada, according to Desjardins Securities, down 15 per cent from a stellar 2013 when debt issuance smashed records. Dig through the aggregate numbers, and you’ll see the drop stems from weak financial debt issuance.