Canada should finance more of its needed infrastructure investment with Canadians’ savings, argues a new study from the CD Howe Institute.

The paper, written by the think tank’s president and CEO, William Robson, proposes the development of instruments similar to already existing securities backed by residential mortgages, leased assets, and real estate. Such securities would allow individuals to participate in the burgeoning field of infrastructure investment now dominated by large pension funds, it says.

“Securities backed by infrastructure portfolios would be a valuable asset class for Canadians saving for retirement,” the paper argues, adding that it, “would also provide liquidity and price discovery to a market that lacks it.

“If Canada’s governments followed the lead of their counterparts abroad and welcomed more private financing”, it concludes, “securitized infrastructure could help close the gap between Canadian savers seeking secure retirement, and the infrastructure repairs and expansions that need their support.”