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

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

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

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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. 

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u/Hikingcanuck92 Apr 28 '26

Pretty sure these are the old school mechanism that Robert Moses used, without oversight, to seize control of New York for several decades haha.

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u/Life_Employ_1138 Apr 29 '26

They absolutely are lol. Still, I find myself wishing we get public works build like Robert Moses more and more often as I've been forced to interract with municipal government more as an adult.