Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this12:20 pm
March 30, 2017
Offline
@butterfly
How much $$$$ are u seriously looking to buy for the second hand GICs that u keep asking….or u just posting for the sake of posting…
Someone who is serious about it and have $$$$$ for it would have a private banker, instead of coming to a forum
12:35 pm
January 10, 2017
Offline
Is it possible to start a "GIC club" wherein members sell GICs to each other at discounts, when appropriate, in order to realize Capital Gains? This might solve the problem of obtaining a source of GICs.
12:40 pm
April 19, 2019
Offline
Lodown said
Is it possible to start a "GIC club" wherein members sell GICs to each other at discounts, when appropriate, in order to realize Capital Gains? This might solve the problem of obtaining a source of GICs.
Wouldn't some rule from CRA apply where an asset is sold at much lower value than it should be like the black book that MTO uses? There is always an element of cash transferred that is not by the rules in cases like this.
But yes, there is probably a market for 2nd hand GICs. There should be as there is more room for saturation of rates. The big gap in GIC rates from different FIs is probably because such a system is not available.
Most FIs say their GICs are NOT TRANSFERABLE so such market may be unprofitable to run.
2:00 pm
September 11, 2013
Offline
CRA generally has nothing to say re value if asset transferred at arm's length.
5:55 pm
September 11, 2013
Offline
Ok, I can see that sell button might just be for redeemable GICs. Same thing in RBC Dir Inv, I found one non-redeemable GIC I hold with a sell button too but it said outside of trading hours now and a phone number to call.
It's possible the person I'm familiar with a couple of years ago was provided special accommodation by Investors Edge, unexpected cash need of a client with a relatively active portfolio, so maybe it was a one-off. I assumed they found a way to unload the GICs to other buyers, or maybe the issuers took them back from the broker as a goodwill gesture, so it's true, it's possible there's almost no market for these types of transactions generally. Guess you'll have stick to discounted bonds, achieve the same thing pretty much.
6:05 pm
January 10, 2017
Offline
butterflycharm said
Wouldn't some rule from CRA apply where an asset is sold at much lower value than it should be like the black book that MTO uses? There is always an element of cash transferred that is not by the rules in cases like this.
No. As stated, It would only be done when appropriate. That is when current rates are higher than the interest rate on the GIC being sold. To continue with a previous example, and assuming we each have the exact same GIC (rate and term), I would sell you my $20,000 two-year GIC for $18,884.35 and you would sell me your $20,000 two-year GIC for $18,884.35. We both end up in the same place, except we each will have Capital Gains upon expiry of the GICs.
Please write your comments in the forum.