Canada’s Capital Markets Reveal Surprising Shifts in 2025

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Canada’s Capital Markets Reveal Surprising Shifts in 2025

Jul. 12, 2025

Canadian capital markets delivered a mixed performance in the first half of 2025, according to data from LSEG Data & Analytics. While equity issuance grew, debt activity declined sharply.

Equity Market Sees Modest Growth

Firms raised $10.8 billion in new equity between January and June, marking a 6% increase over the same period last year. More notably, the volume of equity deals rose by 20%, suggesting greater activity despite limited IPO movement.

Secondary offerings dominated equity markets, with issuance up 3% year-over-year. The initial public offering (IPO) space remained quiet, with only one IPO completed during the first half.

Issuers also raised $1.2 billion through preferred securities, while demand for retail structured products grew modestly.

RBC Tops Equity Underwriting Rankings

RBC Capital Markets secured the top spot on the overall equity underwriting league tables, followed by:

CIBC World Markets Inc.
TD Securities Inc.
National Bank Financial Inc.
Scotiabank

In specialized markets, CIBC led in preferred share underwriting, while Canaccord Genuity claimed the top position in structured product issuance.

Debt Issuance Declines Across the Board

In contrast to equities, Canada’s debt market shrank. Total new issue activity fell 11% to $142.9 billion, while the number of debt deals dropped 12% compared to the first half of 2024.

The decline was led by a sharp drop in corporate bond issuance, which fell 17% year-over-year. Meanwhile, government debt issuance also declined by 6%, reflecting subdued activity across both public and private sectors.

Top Players in Debt Underwriting

RBC also led the corporate debt underwriting tables, capturing a commanding 27% market share.

The top five debt underwriters were:

RBC Capital Markets
BMO Capital Markets
TD Securities Inc.
CIBC World Markets Inc.
Scotiabank

Notably, BMO surged in the government debt category, jumping to first place from fifth last year — a significant move in the competitive landscape.

What the Data Tells Us

The divergence between rising equity activity and falling debt issuance paints a complex picture of market sentiment. Companies may be turning toward equity markets due to tighter borrowing conditions or shifting capital structure preferences amid economic uncertainty.

The increase in secondary offerings suggests that existing issuers are more active, while the stagnant IPO market indicates continued caution among private firms considering public listings.

Meanwhile, the pullback in debt issuance could reflect higher interest rates, reduced corporate expansion, or governments slowing their borrowing after a period of stimulus-driven spending.

Conclusion: A Changing Landscape for Canadian Dealmakers

With equity issuance gaining momentum and debt deals in decline, Canadian capital markets in 2025 are reflecting broader shifts in economic behavior and investor appetite. RBC Capital Markets continues to dominate both debt and equity underwriting, while firms like BMO and CIBC are making notable gains in specialized areas.

As market dynamics evolve in the second half of the year, dealmakers will need to remain agile, especially as macroeconomic trends and interest rate decisions influence investor sentiment and corporate financing strategies.

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