What to do with your South Canterbury money

There are a couple of humdinger sure bets available in the stock exchange's listed debt market, sure bets because they also come with the same government guarantee which has ensured the South Canterbury and Allied Nationwide investors will get their money back with interest.

PGG Wrightson Finance has $100 million of bonds maturing on October 8 next year and are covered by the government's guarantee.

The Wrightson bonds are currently trading at 7.45%. That compares with the 3% to 5.3%, depending on the sum invested, the major banks are offering on their one-year term deposits.

There's also the liquidity advantage: because the bonds are listed, investors are likely to be able to sell them with much less of a loss than they would incur if they had to break a term deposit.