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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Please rank the above companies for level of risk and do you think that our Canadian banks could ever be subject to the issues at SVB? Is BN risky? I read one person writing how his advisor won't let him buy it. Feeling like I don't have much trust in anything right now. How is an investor to handle this uncertainty? I definitely see the benefits of diversity as you had always pushed. I'm also somewhat confused as most advisors have been pushing financials due to the benefits associated with rising rates. Your calm advise would be appreciated.
Thank you!
Read Answer Asked by Neil on March 13, 2023
Q: There has been very little press on the other ((rather large ) bank default, that of Signature Bank.
Did this bank have similar issues as SVB in terms of deposits and composition ? Wondering how many other smaller ( relatively ) banks could be in similar situations. Thanks Derek
Read Answer Asked by Derek on March 13, 2023
Q: Hello 5i team,
I was thinking of taking advantage of this SVB fiasco by adding to my BNS shares.

I mainly hold BNS for income and was wondering what was the payout ratio at this time? Has the ratio increased over the past few years (BNS shares declined ~30% from its all-time-highs in the past year)? How comfortable are you in adding for income purposes?

Thank You,
Andrew
Read Answer Asked by Andrew on March 13, 2023
Q: Wondering why National Bank seems to have better momentum than the other banks like TD even though you recently added TD to one of the portfolios, I believe around $88. BNS has also been a laggard over the years. What is it that prompted you to add TD over NA and would you support selling BNS, TD, or CM to enter NA or RY? It seems like NA and RY seem to have better momentum than the other banks. What would be the risks with this move?
Read Answer Asked by Neil on March 13, 2023
Q: Hello Peter,

How would you trade the collapse of SVB? Banks and Financial companies are taking a hit. Is it time to buy? If yes, what would you prefer- BAC,MS, BX? Or none of the above.
Do you think there is a contagion risk here?
Regards.
Rajiv
Read Answer Asked by Rajiv on March 13, 2023
Q: I'm confused when looking at the value in bond funds going up when the talk in town is that the rates will continue moving up even in Canada maybe a bit later this year. How is that? How do one reconcile that the the rise in yield moved in tandem with the rise in value Thursday and Friday?

Yves
Read Answer Asked by Yves on March 13, 2023
Q: With whats happening in the markets currently with CM's admission of mortgage issues with SIVB debacle, rising rates, volatility etc could be the beginning of a big mess in the Financial services sector.

Although long term you are bullish on 4 of the 5 names do you think it would be prudent from a risk aversion viewpoint to step aside on these names and wait till things settle?

Can you also please comment especially on EQB and GSY and their outlook/risks in this cyclone.

Thanks

Sheldon

Read Answer Asked by Sheldon on March 13, 2023
Q: Hi there, with the failure of SVB, many regionals have also been sold off, possibly unjustifiably. Do you see any current opportunities in the space that seem like good buys? SCHW comes to mind but wondering your thoughts or if there are any others that look good here.
Read Answer Asked by Michael on March 13, 2023
Q: Hi
In looking at the big 5 Cdn banks, it is easy to think they are all being somewhat affected by the SVB shut down, or pressure on US regional banks...or is that jumping to a far fetched conclusion? I see that the Cdn banks have been marching steadily lower lately and have started to wonder whether this is sector related or a fundamental change occurring. Although this may be a bit early in the game, at what point would you feel the Cdn banks are excellent bargains, or is that too optimistic a view of the Cdn banking system, vs the US's regional banking system? As always, I greatly appreciate your thoughts on this!
Dawn
Read Answer Asked by Dawn on March 13, 2023
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