Issuance of new investment-grade corporate debt continued yesterday, although at a less hectic pace than earlier in the week.

Issuance of new investment-grade corporate debt remained heavy yesterday.

Last summer, before the crisis hit, the country's investment-grade debt was trading at 85 basis points over Treasury securities of comparable maturity.

With the possibility of junk bond-financed takeovers more a memory than a threat, the appetite for investment-grade debt climbed.

High-yield bond funds generate income at 7.5pc, compared with 5pc for "investment-grade" debt.

"This will bring us much closer to our goal of being able to issue investment-grade debt," he said.

Last week, he said, the industry had continued its recovery, issuing about $5 billion of investment-grade debt.

This was more than offset by $22 billion of additions, half from 'fallen angels', formerly investment-grade debt downgraded to junk during the year.

Its financing comes from a mix of short-term commercial paper, investment-grade debt and bank loans.

Canadian companies that meet certain minimum standards will be able to sell investment-grade debt, make rights offerings and exchange offerings.