Since most foreign issuers don't have a natural need for Canadian dollars, the proceeds from the sale of Maple Bonds are typically swapped back into the home currency of the borrower. This additional activity has led to narrower spreads on cross-currency swaps, which also benefits domestic borrowers looking to raise funds abroad.
In these three ways, the efficiency of Canadian fixed-income markets has been improved. Other developments have also served to boost the efficiency of Canada's fixed-income markets. For example, we continue to see the growth of electronic trading systems that improve the functioning of markets, particularly fixed-income markets.