Fixed Income Holdings

The fixed income portfolio, which is $41.5 billion, holds marketable and non-marketable Canadian government bonds, corporate bonds, foreign sovereign bonds, other debt, absolute return strategies, money market securities and debt financing liabilities.

Bonds

Bonds consist of marketable and non-marketable Canadian government bonds, corporate bonds and marketable foreign sovereign bonds. Canadian marketable bonds have a fair market value of $9,993 million and the non-marketable bonds have a fair market value of $22,420 million, corporate bonds have a fair market value of $1,006 million and the marketable foreign bonds have a fair market value of $3,387 million as at June 30, 2010. Effective July 1, 2005, at the option of the issuer, any maturing non-marketable provincial bonds issued prior to 1998 may be replaced by a new debt security for terms of not less than 5 years to a maximum of 30 years.

The following table shows the remaining terms of the marketable and non-marketable bonds as at June 30, 2010, including accrued interest, and not including any rollover options.