A Canada Savings Bond is not actually a Bond!

canada_savings_bond.jpgIf you have read the post on what a debenture is this will make more sense. But because a Canada Savings Bond is only secured by the "general credit worthiness" of the Government of Canada it is not a bond, but rather it is a Debenture.  The reason for this? The "Canada Savings Debenture" is not as catchy from a marketing perspective.  The Canada Savings Bond/Debenture is among the safest investments you can make – because the Government has the power to print more money if it cannot make it’s obligations – or it can raise taxes.  Neither of which is really good economic policy long term, but that’s another story… :)

 




Preet Banerjee
Preet Banerjee
...is an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
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