Foreign issuers have found Canadian investors eager for a product that allows them to diversify their fixed-income holdings geographically and by industry, and to earn higher risk-adjusted yields without taking on currency risk. This diversification makes the Canadian bond market more complete, and represents a better allocation of resources, thus increasing efficiency.
Second, by increasing competition with domestic investments, the development of the Maple Bond market has led to pricing of other domestic corporate bonds that better reflects fundamentals. This improved pricing of risk benefits the Canadian financial system as a whole. Third, the development of the Maple Bond market has helped to increase trading and narrow spreads in the Canadian-dollar swap market.