N.Y. investors give Flaherty warm reception

Finance Minister Jim Flaherty took his federal budget sales pitch to New York on Monday and found that convincing investors of Canada's merits was a surprisingly easy sell.

"Relatively speaking, we're in pretty good shape," Flaherty said, comparing Canada with other G7 countries. He was speaking at an event organized by the Canadian American Association of New York.

Flaherty said as countries are emerging from the recession, the tone of meetings between Canadian businesses and financial representatives and Wall Street investors has completely changed from one of indifference to one of excitement.

The finance minister said he heard "a lot of positive views about the Canadian financial sector. The fact that we weathered the storm without having to put any taxpayers' money into the financial system or any of our financial institutions impresses a lot of people."

Canada's relatively low debt ratio, now the best among G7 nations, has led investors to snap up Canadian bonds and drive up the value of the loonie, which some economists forecast will pass the U.S. dollar by mid-year.

Some members of the audience echoed Flaherty's sentiments.

"The country is viewed, and I think fairly, as a star," said Ronald Cino of JP Morgan Asset Management. "Canadian issues that come to market are very well received."

"Most of us in the financial community are very sanguine about Canada's prospects, bullish on the economy," he said.

Flaherty is due to arrive in London on Tuesday to continue his mission of selling Canada as a relatively safe harbour for investment in a world sinking in debt.