5 from 5i: High Yield Bonds are High Rolling

Michael Southern Feb 24, 2017

The Dow Jones Industrial Average yesterday posting a 10th straight day of record gains, its longest such streak since 1987. CIBC (CM) beat analysts’ estimates after posting higher Q1 profit, led by gains in capital markets. The lender raised its quarterly dividend by 2.4% to $1.27 a share. Crescent Point Energy (CPG), whose shares jumped on recent speculation of interest by an activist investor, reported a deeper net loss in Q4 due to a non-cash charge related to a lower oil-price forecast. Gildan Activewear (GIL) forecast profit for the year that trailed analysts’ estimates, saying it expects higher expenses, taxes and unfavorable currency-exchange rates. Loblaw (L), Canada’s largest grocer, said adjusted per-share profit rose 11.5% from a year earlier as drugstore sales helped soften the blow from falling food prices. Freshii (FRII), the healthy fast-casual restaurant franchisor, announced a Master Franchise Agreement (MFA) and entrance into the U.K. market. Here are five stories we found interesting this week:

  1. The strength of junk bonds is connected to the strength of the company that issues them.
  2. Understanding the ‘why’ of your asset allocation vs. simply ‘what’ is my allocation.
  3. Short-term gold trading conundrums.
  4. An interesting (but longer) perspective from a short seller.
  5. Strategies the active investor can look to when markets are less than exciting.


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