The Money Market

The Money Market includes Treasury Bills and other short-term notes.

Government of Canada Treasury Bills

Government of Canada Treasury Bills (T- Bills) are issued directly by the Federal Government and offer the highest degree of safety and liquidity of any investment security available in Canada.

T-Bills can be purchased at any time in maturities ranging from one week to one year. The minimum order size is $100,000. A large secondary market provides instant liquidity for holders who sell their bills prior to maturity.

T-Bills are purchased at a discount and mature at par value. The difference between the purchase price and the maturity value represents the interest earned on the investment (the yield to maturity).

Other Short-Term Investments

Bankers’ Acceptances are short-term negotiable instruments issued by a non-financial corporation but guaranteed as to principal and interest by its bank.

Like Treasury Bills, Bankers’ Acceptances trade at a discount from their face value.

Commercial Paper represents short-term negotiable debt securities issued by non- financial corporations with terms of a few days to a year.

At National Bank Financial, minimum purchases of $100,000 are available with varying maturity dates. Corporate Papers, like T-Bills, are usually purchased at a discount from par value but some are interest bearing.