This summary was created by AI, based on 1 opinions in the last 12 months.
The experts have differing opinions on Bonds (BOND-T) vs. GICs. Some believe GICs are terrific investments, especially when laddered for reinvestment every 12 months. Others highlight the after-tax appeal of corporate bonds, offering a capital gain item that improves tax returns. There are times when GICs are more attractive, but bonds can provide higher yields than GIC rates in a quick selloff. Overall, the consensus is that both options have their merits depending on the market conditions.
He has no problem with GICs. Terrific investments. If you ladder them, you'll get your money back every 12 months to reinvest. You can choose to reinvest in another GIC or in a bond.
Bonds are more complicated, but corporate bonds offer an after-tax appeal that a GIC doesn't. Because GICs are issued at par, they're fully taxable. Whereas the discount of a corporate bond is a capital gain item, and will improve your tax return. If it's your RRSP, a full-coupon GIC is fine. See his Top Picks.
There are times when GICs are very attractive compared to bonds, and at some of the maturities right now they are. But if there's a quick selloff in the bond market, GICs don't respond as quickly, and so the bonds give you yields higher than GIC rates.
Bonds - vs. GICs is a Canadian stock, trading under the symbol BOND-T on the Toronto Stock Exchange (BOND-CT). It is usually referred to as TSX:BOND or BOND-T
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Bonds - vs. GICs was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Bonds - vs. GICs.
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In the last year, there was no coverage of Bonds - vs. GICs published on Stockchase.
On 2024-12-06, Bonds - vs. GICs (BOND-T) stock closed at a price of $19.88.