Bloomberg reported that Canada’s largest money managers are joining the ranks of America’s shadow banks.

Bloomberg notes that Canada’s fifth-largest pension plan, intends to open a loan-origination business in New York by year-end. That follows the Canada Pension Plan Investment Board’s $12 billion deal to acquire GE’s business that lends to smaller companies.

Bloomberg said the Canadians are part of a wave of institutions unencumbered by U.S. regulation searching for higher returns in the market for risky loans to American companies.

To read the Bloomberg full report, click here.