Q: Hello Peter,
I hold CSU debentures in my income portfolio at a cost of 133 which are trading about 10% below my cost.
Would you prefer to hold them over the top 10 equities in the income portfolio? I generally prefer to have income investments with at least 3% dividend and a 3% growth above and over inflation.
Your comments are appreciated.
Regards
Rajiv
I hold CSU debentures in my income portfolio at a cost of 133 which are trading about 10% below my cost.
Would you prefer to hold them over the top 10 equities in the income portfolio? I generally prefer to have income investments with at least 3% dividend and a 3% growth above and over inflation.
Your comments are appreciated.
Regards
Rajiv
Q: After going down for a couple of years , the price seems to be roughly flat the past year or so. Is it just the inflation rate that makes the share price more or less appealing to investors or do interest rates affect it too? What would you expect in the next couple of years if inflation stays flat and interest rates drop?
Q: Clarification, with respect to your answer re the guess for the next rate on these Debs. The way I understand it is as follows
The rate is calculated via 6.5 Pus or minus the rate of change in inflation, not the rate of inflation. Thus is the change of roi is 2% next march the interest rate on the debs would be 6,5-2=4.5
From csu ir news release:
This new interest rate is equal to the annual average percentage change in the “All-items Consumer Price Index” published by Statistics Canada during the 12 month period ending on December 31,
The rate is calculated via 6.5 Pus or minus the rate of change in inflation, not the rate of inflation. Thus is the change of roi is 2% next march the interest rate on the debs would be 6,5-2=4.5
From csu ir news release:
This new interest rate is equal to the annual average percentage change in the “All-items Consumer Price Index” published by Statistics Canada during the 12 month period ending on December 31,