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Email this2:09 pm
October 21, 2013
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If so, this doesn't bode well for our pension plans. Some of them are already marginal.
4:56 pm
December 12, 2009
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slow_n_steady said
I am trying to determine how I can purchase Canada Savings Bonds (CSBs) or provincial savings bonds. Preferably with getting a paper certificate for them.I have checked the CSB website and they aren't selling new bonds till later in the year. I would like to purchase some in the short term.
I was wondering if anyone on this forum has experience with this.
From what I understand, bank branches are limited to selling new bonds only when they are available.
I think I would have to find a bond broker to access the bond market for bond purchases then. But I am unsure what the fees are for such transactions as well if you get a paper certificate. Or how to find a qualified and reputable bond broker.Is there another method to purchase bonds other then through a broker and still get a paper certificate?
If anyone has advice on the paper certificates whether they are needed or not, that would be helpful too.
I am fully aware that bond returns are significantly lower then GIC returns.
Thank you for your opinions in advance.
Canada Savings Bonds have been discontinued years ago. The final issue of CSBs matured December 31, 2021, and now pay no interest (if unredeemed).
You can still purchase Government of Canada bonds on the secondary market through a discount broker, though.
Edit: Someone bumped a very old thread. 🙁
Cheers,
Doug
5:00 pm
December 12, 2009
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Loonie said
If so, this doesn't bode well for our pension plans. Some of them are already marginal.
Actually, rising interest rates are actually, longer term, a benefit to pension plans. Sure, right now, they've seen declines in the asset values of not only their equity but fixed income portfolios, but for their maturing bonds and cash allocations, this provides them an opportunity to lock in higher interest rates on new long term bond issues. That should, ultimately, be beneficial to the net present value and solvency ratios of the pension plan(s) and, in turn, their next actuarial valuation reports. 
Cheers,
Doug
6:28 pm
April 18, 2022
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TommyT said
That makes sense they say every ponzi at some point in time implodes and the U.S. stock market is the biggest and most overvalued ponzi of all time maybe all times including the next one million years in the future. The public is starting to catch on and the bankers will end up with all their worthless stocks all of them trading at ten times fair market value. The only way this will change is hyperinflation in America and the U.S. dollar going to zilch. That will be the only way they can possibly rescue their fraud ponzi U.S. stock market.
The US has lost the right to be the world's reserve currency. I'm amazed investors still run to it China has wisely unloaded a trillion half its bond holdings. Their #1 export is inflation the world will be a better place when they don't hold such sway.
6:58 pm
October 21, 2013
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Doug said
Actually, rising interest rates are actually, longer term, a benefit to pension plans. Sure, right now, they've seen declines in the asset values of not only their equity but fixed income portfolios, but for their maturing bonds and cash allocations, this provides them an opportunity to lock in higher interest rates on new long term bond issues. That should, ultimately, be beneficial to the net present value and solvency ratios of the pension plan(s) and, in turn, their next actuarial valuation reports.
Cheers,
Doug
I was referring to Tommy's post about the stock market as a ponzi scheme. I don't think bonds could compensate for that. They WILL benefit from rising rates, but those that are inflation-adjusted will also suffer on that front because interest rates are not keeping up with inflation now.
3:21 pm
November 18, 2017
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Guaranteed investments, over the mid-to-long term, usually closely track equities. They have some advantages, though:
1. No management fees, little to no commissions.
2. You get to pick your investment with full knowledge of its future performance beforehand. Many equities many outperform them, but you won't know which until it's too late.
3. They are simple to deal with at tax time. (Gain/loss calculations MAY give tax advantages to high-tax individuals, but they are also comnplicated. Many retirees with large shares of their dough in tax-free vehicles pay little to no tax anyway.)
RetirEd
RetirEd
5:43 pm
April 6, 2013
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RetirEd said
Guaranteed investments, over the mid-to-long term, usually closely track equities.…
No, they don't.
No bond or GIC holders were doubling their investment every decade as stock investors have been. In fact, it takes a major disaster like what happened in 2008 to bring the return of stocks down to the return of bonds and GIC's.
6:25 pm
March 30, 2017
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Doug said
Actually, rising interest rates are actually, longer term, a benefit to pension plans. Sure, right now, they've seen declines in the asset values of not only their equity but fixed income portfolios, but for their maturing bonds and cash allocations, this provides them an opportunity to lock in higher interest rates on new long term bond issues. That should, ultimately, be beneficial to the net present value and solvency ratios of the pension plan(s) and, in turn, their next actuarial valuation reports.
Cheers,
Doug
banks and insurance companies benefits when the curve steepens or at last higher interest rate across the board.
The "reduction" of the PV of liabilities does magic to insurance companies' balance sheet as long rate rises.
Dv01 is what they watch like a hawk
6:53 pm
September 11, 2013
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RetireEd, you buy stocks and hold them for decades, zero fees after initial purchase, unlike GICs which have hidden fees (reflected in lower interest rate yield) every time you redeem and buy new ones.
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