Canadian Bond Market Overview
Various types of bonds are available in the Canadian bond market. The
Canadian bond market consists of bonds issued by the government and non governmental bodies. Amongst all the bond markets in Canada, the corporate bond market has been doing well.
Canadian Corporate Bond Market
The corporate bond market in Canada has started to do good business, since the last few years. The following factors have contributed to the success of the corporate bond market:
Low Inflation
Lowest Levels of Long Term Interest Rates
Reduced Public Borrowing
The development of new products has contributed to the better performance of the Canadian corporate bond market. Equally important, in this regard, has been the increased interest of investors in bonds, that offer higher returns.
The corporate bond market is extremely important for the bond market scenario in Canada as it offers the investors in Canada more opportunities. The biggest beneficiaries of the corporate bond market in Canada have been those business firms, who have depended on the Canadian banks and corporate bonds in the US for investing in high risk projects.
Canadian Savings Bonds
The savings bonds, available in Canada, help the holders to save and invest well. The savings bonds are also utilized for purposes of giving gifts. The Canadian savings bonds can be cashed throughout the year. These are generally considered to be a pretty safe form of investment. The Government of Canada provides the savings bonds.
Canada Premium Bonds
The premium bonds of Canada are also provided by the national government of Canada. They provide the investors with higher rates of return compared to the savings bonds, that are sold at the same point of time.
The premium Canadian bonds cannot be redeemed before one year from the date of issuance. The period is extended till a month from that date.
Canadian Bond Market Products
There are some other bonds, that are available in the Canadian bond market. They could be mentioned as below:
- Treasury Bills
- Real Return Bonds
- Marketable Bonds