Investment Options

Federal Crown Corporations are special purpose corporations created by an act of the Canadian Parliament. Several of these corporations have been prominent borrowers in the international markets for many years. Their presence in the Canadian domestic bond market has grown significantly in the past decade. Investors should be aware of these issuers and the benefits they offer.

The Federal Crown Corporations that are active in the Canadian domestic bond market and have recent primary offerings are:

• Export Development Corporation (EDC) - Devoted to providing trade finance services in support of Canadian exporters and investors. Founded in 1944, EDC operates as a commercial financial institution.
• Canada Mortgage and Housing Corporation (CMHC) - Has a mandate to promote the construction of new houses, the repair and modernization of existing houses and the improvement of housing and living conditions.
• Business Development Bank of Canada - A financial institution wholly-owned by the Government of Canada with a mandate to support Canadian entrepreneurship through the provision of financial and management services to small business.

Credit Quality

These corporations are either direct obligations of the Government of Canada or fully guaranteed by the Government of Canada. Either way, they carry the same credit quality as Government of Canada bonds and strips.

COMMON CHARACTERISTICS

Dollars to Invest/Time Horizon

Risk/Return

Liquidity

Income

KEY BENEFITS

• Over the past several years each of these borrowers has been active in the Canadian domestic bond market with new primary offerings and/or medium term notes.
• Generally higher yields than similar Government of Canada bonds