Cash options in Canada

[turar]

I find myself holding quite a bit of cash in CAD, given the lack of bargains in the market, as well as the fact that I usually hold "non-investable" cash cushion as well. I do have a portion of it in USD as well, but majority is CAD, mostly due to higher interest. I'm starting to get nervous about holding so much cash in one currency, especially after articles like this: http://www.theglobeandmail.com/globe-investor/meet-the-hedge-fund-founder-whos-betting-against-canadas-economy/article11585150/

 

So I'm wondering what strategies Canadians here employ, do you diversify much into other currencies?

[Fairfaxnut]

I like the ETF CLF.  1-5 ladder bond.  For the environment, it's a great play for temporary Canadian cash.  Some Canadian brokers will even let your buy this etf without commissions.

[beerbaron]

I like the ETF CLF.  1-5 ladder bond.  For the environment, it's a great play for temporary Canadian cash.  Some Canadian brokers will even let your buy this etf without commissions.

 

I especially like the expense ratio! Used to own it instead of cash but gave up trying to earn 1% but exposing myself to extra market risk.

 

BeerBaron

[Fairfaxnut]

I used to sell calls and puts on XSB to get my "coupon payments" right now which worked well for a while, but the liquidity of the options became an issue when I wanted the cash.