(Bloomberg) The words “bold” and “pension fund” don’t always go together easily. Then again, neither do bold and Canada.But Canadian public pension funds are once again employing bold strategies in a world where interest rates have remained persistently low at the very moment that aging baby boomers are increasingly drawing down their retirement funds.
With traditionally safe pension investments such as bonds no longer yielding enough to cover obligations, a number of Canadian plans are ramping up leverage strategies — approaches intended to squeeze more profit from their investments by doubling down with debt.
