Bills of exchange or commercial draft drawn by a borrower (usually a corporation), guaranteed or “accepted” by the borrower’s bank, for payment on a specified date. |
Key Benefits
- Same credit quality as the guaranteeing bank
- Can be sold at market value prior to maturity
- Usually yields higher than Federal/Provincial government issued Money Market securities with similar terms
- Meets most investment policy guidelines
Return
- Sold on a discount basis
- Return to the investor is the difference between the purchase price and the maturity value
Liquidity and Investment Time Frame
- Highly liquid with active trading market
- Limited market inventory
- Majority with maturity of 90 days or less; can also be issued for 1 to 365 days
Minimum Requirement
- $25,000
- Multiples of $1,000 thereafter
For more information please contact us.
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