6. What are the Advantages of Investing in Trust Deeds?

Yields are significantly higher (8% to 14% per annum) compared to other asset based investments.  For example (as of 11/22/2010):

Short term Ginne Mae — 1%...8 year — 3.6%,
1 year Treasury Bills .60% — 10 year Treasury Notes 2.87%,
1 year AAA Corporate Bonds 1% —10 year 3.6% 
As you know, even AAA bonds are subject to some degree of volatility — when interest rates go up, bond prices go down, and of course when interest rates go down, bonds go up. In this market I wouldn’t rely too heavily on interest rates going down.

In addition, CNF investors enjoy monthly interest payments as they are received from the borrower.

When you invest through CNF, you know that your Trust Deed investment was underwritten by industry professionals before making it available to its clientele

<< Back