A bond that helps hedge against inflation is perfect for pensions, so why is Ottawa moving to end it just when it\u0027s most needed? Read on.
In a surprise move, the Canadian government said earlier this month that it had decided to cease issuance of real return bonds , citing low demand.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300A welcome email is on its way.
“Inflation is high and a lot of plans were thinking about getting more into this asset class, and now the asset class has been removed,” said Ashwin Gopwani, managing director, client solutions at SLC Management, which manages investments for pension plans.Article content In an email to Reuters, the Canadian government said it undertook extensive consultations in 2019 which showed poor demand for RRBs and this was reinforced in recent consultations with market participants.With roughly $49 billion of RRBs outstanding, the market is too small for the largest pension funds to adequately hedge their inflation risk.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pension managers cry foul as Ottawa moves to end bond that tracks inflationA bond that helps hedge against inflation is perfect for pensions, so why is Ottawa moving to end it just when it\u0027s most needed? Read on.
Read more »
Ontario boosts ‘strong mayor’ powers to fast track housing development in Toronto and OttawaOpposition criticizes moves as ‘anti-democratic’; Municipal Affairs Minister says reforms are needed to speed home building
Read more »
‘Strong mayors’ in Toronto and Ottawa even stronger after surprise move by Doug Ford governmentNew rule will allow mayors to force through bylaws that align with provincial priorities “if more than one-third of council members vote in favour.”
Read more »
GARRIOCH: Two OHL owners have teamed up in a bid to purchase the Ottawa SenatorsTeams are forming off the ice to try to purchase the Ottawa Senators.
Read more »
Toronto Star owner among growing list of potential bidders for Ottawa Senators: ReportThe Ottawa Citizen reported Tuesday that Paul Rivett is on the growing list of potential investors vying to acquire the NHL team, in addition to actor Ryan Reynolds and Andre Desmarais of Power Corp.
Read more »
Ottawa turns down Baffinland’s iron ore expansion plans in NunavutOntario-based company had hoped to double its production of iron ore at its Baffin Island mine in Nunavut to 12 million tonnes a year
Read more »