Emerging Canadian High-Yield Debt Market Provides An Additional Financing Option

Over the past two years, Canada has witnessed the emergence and growth of a highyield debt market – a financing market historically limited to the United States. The growth of this new market can be primarily attributed to (i) Canadian investors seeking alternative high-yield investments to fill the void caused by the dissolution of the income trust market; (ii) Canadian investors' increased appetite for risk in a lowinterest rate environment; and (iii) general receptiveness of the capital markets to known Canadian companies. A diverse range of issuers – in the logistics, transportation, food services, media, and oil and gas sectors – have recently completed offerings. These issuers include portfolio companies of private equity and pension funds.