These mortgages must be individually guaranteed under the National Housing Act. This is then sold to a third party. When individuals make their mortgage payments to the financial institution, the financial institution passes the payments through to the owner of the security by sending a cheque for the total of all payments.
Corporate Bonds: These are long-term bonds issued by corporations with very strong credit ratings. The typical corporate bond sends the holder an interest payment twice a year and pays off the face value when the bond matures. Some corporate bonds, called convertible bonds, have the additional feature of allowing the holder to convert them into a specified number of shares of stock at any time up to the maturity date.
Government of Canada Long and Medium Term Bonds: These bonds are issued by the government to finance its deficit. Medium term bonds have an initial maturity period of 3-10 years, whereas the long term bonds have a maturity of more than 10 years. These instruments are issued either in bearer or registered form in denominations of $1000, $5000, $10000, $25000 or $100000. In registered bonds, the name of the owner appears in the certificate and is registered at the Bank of