本文发表在 rolia.net 枫下论坛Short-term Investments
- 这篇会给大家总结一下short-term investments available in Canada。
Canadian Money Market
"Canadian Money Market" refers to the market for short-term, non-equity, fixed income financial instruments such as treasury bills, government bonds,
negotiable bank paper, finance company paper, and commercial paper from non-financial corporations. "Paper" refers to legally issued promise to pay.
Canadian Money Market Instruments
1) Government paper:
a) Government of Canadian treasury bills - Treasury bills are issued and traded in very high volume, and T-bills are the shortest term instruments
issued by the federal government. Generally, they are issued with terms to maturity of 98 days, 168 or 182 days, and 350 or 364 days. T-bills
are free of credit risk and highly liquid. The results of the weekly treasury bill auction significantly affect general interest rates since they are
used by the Bank of Canada to set the Bank Rate. The Bank Rate is the minimum rate at which the Bank of Canada will make advances to the chartered banks.
b) Provincial and municipal short-term paper - Province issue their own short-term paper and also authorized their crown corporations and agencies
to do so. Province more commonly issue 91-day treasury bills on a discounted basis. Large municipalities most commonly issued short-term debt with
terms less than 90 days on a discounted basis. Generally, this paper earns a higher rate of return than Government of Canada paper due to lower marketability
and higher credit risk.
2) Chartered bank paper:
A variety of deposit instruments are issued by Canadian chartered banks. Deposit instruments may be sold on either a discount or an interest bearing basis.
a) Bearer deposit notes - are secured by the general credit (standing) of the issuing bank and are issued at a discount in minimum amounts of $100,000.
The term of these instruments ranges between 30 days and one year.
b) Term notes, certificates of deposit, guaranteed investment certificates and term deposits - they bear fixed interest rate and are issued in very
low minimum amounts (usually $500 to $1,000). Interest may be payable on a monthly, semi-annual, annual basis or on maturity.
3) Mutual funds and pooled funds:
Money market mutual funds and pooled funds are offered by all of the larger banks as well as various mutual funds companies and insurance companies.
"Pooled funds" refers to mutual funds that do not require a prospectus because they fall under one of the specific exemptions available, and often
have lower management expense ratios. Both types of funds invest in short-term money market instruments.
4) Banker's acceptances:
Banker's acceptances (BAs) are commerical drafts that have been "accepted" by the borrowing corporation's bank. It is similar to commercial paper
but is guaranteed by a bank. Bank charge a stamping fee for providing this guarantee. Accepted means that the payment of interest and principal is
guranteed by the bank. Acceptances are treated by banks as their own liabilities (offset by an equivalent asset), but the issuer must make the funds available
to the bank on maturity. The yield on BAs usually is lower than that on commercial paper but higher than that on treasury bills. Terms range from
30 days to one year generally.
5) Commercial paper:
Commercial paper refers to short-term, unsecured promissory notes issued by a variety of non-financial corporations with solid reputations. Terms
range from overnight to one year; however, the most common maturities are 30, 60 and 90 days. The instruments are purchased at par with interest
payble at maturity. The yield on commercial papers generally is higher than treasury bill yields.更多精彩文章及讨论，请光临枫下论坛 rolia.net
- 这篇会给大家总结一下short-term investments available in Canada。
Canadian Money Market
"Canadian Money Market" refers to the market for short-term, non-equity, fixed income financial instruments such as treasury bills, government bonds,
negotiable bank paper, finance company paper, and commercial paper from non-financial corporations. "Paper" refers to legally issued promise to pay.
Canadian Money Market Instruments
1) Government paper:
a) Government of Canadian treasury bills - Treasury bills are issued and traded in very high volume, and T-bills are the shortest term instruments
issued by the federal government. Generally, they are issued with terms to maturity of 98 days, 168 or 182 days, and 350 or 364 days. T-bills
are free of credit risk and highly liquid. The results of the weekly treasury bill auction significantly affect general interest rates since they are
used by the Bank of Canada to set the Bank Rate. The Bank Rate is the minimum rate at which the Bank of Canada will make advances to the chartered banks.
b) Provincial and municipal short-term paper - Province issue their own short-term paper and also authorized their crown corporations and agencies
to do so. Province more commonly issue 91-day treasury bills on a discounted basis. Large municipalities most commonly issued short-term debt with
terms less than 90 days on a discounted basis. Generally, this paper earns a higher rate of return than Government of Canada paper due to lower marketability
and higher credit risk.
2) Chartered bank paper:
A variety of deposit instruments are issued by Canadian chartered banks. Deposit instruments may be sold on either a discount or an interest bearing basis.
a) Bearer deposit notes - are secured by the general credit (standing) of the issuing bank and are issued at a discount in minimum amounts of $100,000.
The term of these instruments ranges between 30 days and one year.
b) Term notes, certificates of deposit, guaranteed investment certificates and term deposits - they bear fixed interest rate and are issued in very
low minimum amounts (usually $500 to $1,000). Interest may be payable on a monthly, semi-annual, annual basis or on maturity.
3) Mutual funds and pooled funds:
Money market mutual funds and pooled funds are offered by all of the larger banks as well as various mutual funds companies and insurance companies.
"Pooled funds" refers to mutual funds that do not require a prospectus because they fall under one of the specific exemptions available, and often
have lower management expense ratios. Both types of funds invest in short-term money market instruments.
4) Banker's acceptances:
Banker's acceptances (BAs) are commerical drafts that have been "accepted" by the borrowing corporation's bank. It is similar to commercial paper
but is guaranteed by a bank. Bank charge a stamping fee for providing this guarantee. Accepted means that the payment of interest and principal is
guranteed by the bank. Acceptances are treated by banks as their own liabilities (offset by an equivalent asset), but the issuer must make the funds available
to the bank on maturity. The yield on BAs usually is lower than that on commercial paper but higher than that on treasury bills. Terms range from
30 days to one year generally.
5) Commercial paper:
Commercial paper refers to short-term, unsecured promissory notes issued by a variety of non-financial corporations with solid reputations. Terms
range from overnight to one year; however, the most common maturities are 30, 60 and 90 days. The instruments are purchased at par with interest
payble at maturity. The yield on commercial papers generally is higher than treasury bill yields.更多精彩文章及讨论，请光临枫下论坛 rolia.net