Canadian Income Trusts – An Attractive Liquidity Option for U.S.Companies
|Area||Corporate Finance and Securities, REITs and Income Securities|
U.S. companies now have an attractive new way of raising capital and providing liquidity for their stockholders – forming an income trust in Canada.
Yield-hungry investors have purchased over C$9 billion of Canadian income trust units since early 2001, bringing the market capitalization of income trusts on the Toronto Stock Exchange to over C$40 billion. While a broad range of Canadian businesses have raised capital through the income trust vehicle, there is a growing realization that U.S. private companies may provide significant untapped potential for this market.