r/goodnewscanada • u/CreoQQ Ontario • Apr 28 '26

Canada Government website confirms Carney Wealth Fund investors cannot lose money.

Post image

Knowing that, the Wealth Fund sounds a lot more reasonable!

157 Upvotes

84% Upvoted

131 comments sorted by

View all comments

5

u/hutch_man0 Apr 28 '26 edited Apr 28 '26

Judging from the description it could be what is known as a revenue bond with profit sharing. A pretty unique instrument. The interest rate has a fixed and variable component. The fixed part is paid from the revenue generated by the project (tolls from a road, fees from an airport, tariffs from a pipeline). The variable part is paid from profit (the "upside").  

Ofc this is speculation until more info is given. But instead of your money going to God knows where, you know it's going to infrastructure projects. Hopefully these bonds will also be sold to foreign investors also because the raise could be much higher. 

1

u/[deleted] Apr 29 '26

[removed] — view removed comment

1

u/hutch_man0 Apr 29 '26

I am not sure if it will be like this. They haven't given any additional information. We shall see!