Commercial Paper investments are short-term promissory notes
issued by major corporations. They provide the highest yield
available for a short-term investment. Commercial paper is a direct
obligation of the issuing corporation and is available in U.S.
denominations for those seeking currency diversification. TD Canada Trust
sells only the highest quality commercial paper available. Like all
money market investments, commercial paper is fully marketable and
can be sold at market value at any time.
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 corporation. Not CDIC
insured. Higher yields than BAs and government-issued
Money Market securities of similar term.
Liquidity
Highly liquid; may be sold at any time, with settlement within one
business day.
Income
Earnings are distributed at maturity.
Key Benefits- Unlimited issuer obligation, regardless of
the size of the investment.
- Higher yielding than term deposits, GICs,
government-issued Money Market securities and BAs.
- High degree of liquidity.
- RSP/RRIF eligible.
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