Canadian pension funds, insurers face shrinking pool of quality private debt investments

Pension fund visual. Credit: Business Korea

Canadian pension funds and insurers are facing a shrinking universe of higher-quality private debt investments to lift returns in a low-yield world, as the coronavirus pandemic has crushed many businesses, while banks maintain lending to better ones.

The tightening supply of this high-yielding credit comes as many Canadian institutional investors have been accelerating their exposure to the private debt.

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