BUYER BEWARE: Mark Carney Pitches a Canada “Wealth” Fund - Funded With Government Debt - What Could Possibly Go Wrong? - EnergyNow
BUYER BEWARE: Mark Carney Pitches a Canada “Wealth” Fund - Funded With Government Debt - What Could Possibly Go Wrong? - EnergyNow
Source: EnergyNow
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DW NOTE
Carney proposes a sovereign wealth fund capitalized not with surplus revenue but with borrowed money. Canada ran a C$40 billion deficit last year. This is a leveraged investment vehicle with a cabinet, not a wealth fund — the difference being that actual sovereign wealth funds deploy windfalls, while this one would deploy debt issued at 4%+ in a market that has repriced risk sharply upward since February.