Distressed Volatility

Canadian Royalty Trusts Will Never Return to Their Former Glory

I rememember the Canadian Income Trust massacre of 2006/7! It was nuts. Those instruments were so interesting for US holders at that time given the high oil/gas prices, plus an increase in the Canadian dollar which boosted pay outs to us holders. After the massacre it was a great buy, plus remember oil was around $50 right when they taxed the trusts, before running up to $147! I wrote a piece about it actually earlier this year actually saying get long USD/CAD but talked about the story, Canetic Resources was interesting before they got bought out by PWE. So that tax hike doesn't really look that great now does it, especially if energy stays depressed into the tax holiday.. www.distressedvolatili...