For the first time in twelve years, the government of Canada last week went to the U.S to float a bond issue. To help fatten Canada's foreign exchange reserves, five giant U.S. life insurance companies, led by Prudential,* agreed to buy $250 million worth of 25-year, 5% Canadian government bonds. Avowed purpose of the loan was to make it possible for the Canadian government to cancel part of a still unused $400 million credit with the U.S. Export-Import Bank. Its real purpose: to give the world a massive demonstration of investor confidence...
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