In a bear market or an approaching one, this protects the portfolio. Interest payments on most bonds remain the same. This way a predicable steady income can be expected. The risk level, for each individual is different. This could be due to age, level of income, health and so forth.
Membership is limited to banks, trust companies and loan companies.
The deposits are not insured separately in each branch office of a member financial institution. Your deposit must be payable in Canada in Canadian currency to qualify for the deposit insurance. Inflation and Bonds Inflation and or rising interest rates, have an adverse effect upon bonds. Remember the teeter totter, when interest rates go up, bonds go down. Be careful when buying bonds when interest rates have hit bottom or are starting to go up.