Quebec’s Independence Talk Is Making Bond Investors Nervous
Parti Québécois Leader Paul St-Pierre Plamondon has promised to hold a referendum on Quebec independence if his party takes power.
Photographer: Andrej Ivanov/BloombergQuebec’s main separatist political party is on the rise, and it’s turning some investors away from the province’s bonds.
Thirty-year Quebec bonds are trading around six basis points wider than similar debt from Ontario, a spread not seen in almost a decade, according to data compiled by Bloomberg. The higher risk premium suggests heightened concern about political stability in the French-speaking province, which accounts for more than a fifth of Canada’s population.