Government Guaranteed Commercial Paper investments are
short-term promissory notes issued by Crown Corporations (e.g. the
Canadian Wheat Board, The Federal Business Development Bank) and
fully guaranteed by the Government of Canada, no matter how much
you invest. They offer the same high quality as Government of
Canada T-Bills, but pay a slightly higher rate of return. Many
Crown Corporations issue commercial paper denominated in U.S. as
well as Canadian dollars, and both are considered Canadian content
within your RSP/RRIF. Crown Corporation Paper is available for
terms from one month to one year. Like all money market
investments, Crown Corporation Paper can be sold at market value at
any time, should you need access to your funds prior to
maturity. Common CharacteristicsDollars to Invest/Time Horizon
Minimum investment (at face value) $100,000, and multiples of
$1,000 thereafter. Terms vary from one month to one year.
Risk/Return
Direct obligation of the issuing Canadian Crown Corporation and
fully guaranteed by the Government of Canada. There is
essentially no risk with any investment held to
maturity--every aspect of the investment is guaranteed, regardless
of the size of the investment. Offers slightly higher yields than
Government of Canada T-Bills.
Liquidity
Highly liquid; may be sold at any time, with settlement within one
business day.
Income
Earnings are distributed at maturity.
Key Benefits- Highest guarantee of principal available
of any investment sold in Canada, regardless of the size of the
investment.
- Fully guaranteed principal and return if
held to maturity.
- Higher yielding than term deposits, GICs
and Government of Canada T-Bills.
- High degree of liquidity.
- RSP/RRIF eligible.
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