Treasury Market Products

Government of Canada Bonds

Long-term debt issued by the federal government which provide semi-annual coupon (interest) payments. Government of Canada Bonds are highly liquid investments which may be sold back by investor into the secondary market prior to maturity.

Bearer Deposit Note

Negotiable, short-term non-interest bearing notes issued by Banks such as HSBC Bank Canada, Bearer Deposit Notes are sold in bearer form at a discount to their face value.

Government of Canada Treasury Bills

Government of Canada Treasury bills are debt instruments issued by the federal government. These instruments offer a high level of safety of principal and interest and typically are liquid investments as there is a well established secondary market.

Bankers’ Acceptance

Bankers’ Acceptances are non-interest bearing notes sold in bearer form at a discount to their face value and redeemed at maturity for the full face value. The notes are issued by a borrower and are stamped “accepted” by a financial institution such as HSBC Bank Canada.

Commercial Paper

Commercial paper is a short term unsecured promissory note issued by financial and non-financial corporations. Commercial paper is most commonly issued at a discount to face value but on short maturities may trade in interest bearing form.

Asset Backed Securities

Asset securitization is the process whereby interests in financial assets (for example, loans) are packaged, underwritten and sold in the form of asset backed securities.