Investment Q&A

Q: With U.S. Treasury yields on the rise, is this a good time to buy this U.S Treasury focused ETF? Also, looking forward, and assuming a higher for longer scenario for interest rates, that are at a peak now, and will stay there for a couple of years, what would your outlook be for this ETF? Is the yield sustainable at a targeted 10%, or might it rise in the short term? Thanks. Will

Q: Thank you for the answer provided today to Guy R. re Structured Notes.
My question is similar but about Principal Protected Notes pushed by advisors as well.
Thank You!

Q: MY ERROR ! I asked the question ... "I have recently come across some US covered call ETF's offering +10% returns on ES Bonds. Sorry, don't have the ticker. They are on streaming platforms and flash by before I can write then down. Can you comment on the danger of such an investment, the stability of the dividend as interest rates are certain to shift. Thanks ! " BUT, I meant to type US (not ES). SORRY. Please deduct a few additional questions due to my typo.

Q: With the sell-off and resultant higher yields on bonds, what are a few bond ETFS that I might consider as a short term park for money in registered accounts. Maybe there are bonds I could buy? They are hard to get some times on my bank platform: CIBC Investors Edge.

I have not owned any bonds for a very long time. Prefer dividend growth stocks.

Q: What can you tell us about structured notes and any recommendations?

Q: Dear 5i,
Many experts are suggesting that Bonds are very attractive right now because of the high yields.
Can you please suggest some Canadian bond ETF's and Mutual Funds that one might want to do further research on. In your opinion what duration range represents a sweet spot that might offer attractive total return within 3 years.

Q: Good Morning ,

Could we have your opinion on this new listing from Harvest. Also do you see their risk evaluation as accurate (medium-low). Thank you.

Q: I recently noticed that I had been given Rights by Constellation software which ended on Sept 28. I have done nothing about these Rights, so will there be any consequences, tax or otherwise that I did not exercise them. I am confused what these Rights meant and I had not looked at my account for a while, so I must have missed the information. Can you explain what I should have done and if there are any tax consequences of having done nothing. Thank you

Q: Hi there, with all the buzz about fixed income, Gics, bonds etc. I feel like maybe I should be increasing my exposure in my RRSP. I am retired and definitely have a diversified portfolio more slanted toward div paying solid equity companies.

I know you can’t give personal advice but what might be a good way to tweak my portfolio to increase fixed income exposure for 5-10 years ie gic or bond ladder, ETFs, individual bonds or?

Or should I stay in dividends and forget about it?

Ok thank you!

Q: Hello Peter and company,

With XLB hitting a new 52 week low, should I continue to take a long term view that yields will eventually be lower? I took a position in January and not sure weather to add, sell or hold. I have a 4% position with the reminder in the balanced portfolio and cash.

Thanks for the great service,
Angelo

Q: Peter; I’ve read the replies on both- what is the difference between the two - XCB seems to have performed better over the year. Thanks.
Rod

Q: Are the Extendible Notes offered by TD Bank as safe as GICs . They offer a slightly better yield on CAD GICs and over 6% on USD . There must be a downside to cause this ... Please explain

Q: Good morning, Is it a good time to invest in US corporate bonds? What would you recommend to get through these turbulent times in the market?

Q: can you recommend any Canadian or Us corporate bonds that are safe and pay a good dividend

Q: Recently retired younger couple. Need to continue to preserve and grow portfolio, but also need to secure near term income stream.

I am looking to shift some equity to fixed income and trying to decide the best approach.

I have registered and non registered accounts. The non registered account is in dividend payers, and will leave this as is. Tax treatment is good, flexibility is good, recession proofish.

I am considering changes to the setup of my registered accounts. Two main options appear to be:

1. Move an registerd account from the current discount broker (Questrade) to somewhere like EQ bank and buy laddered GIC's. Advantage - CDIC protection, maybe very slightly higher rate of return. Disadvantage - Admin pain, loss of flexibility

2. Stay with current discount broker and simply move into CASH.TO

I am strongly leaning to option 2 - am i missing something here?
Why would i go to the trouble of option 1?
Are there other (better) options?
How big of a risk is there with something like CASH not having CDIC protection?

Thanks,


Jim

Q: What do you think of Denison Mines in terms of valuation/leverage to higher uranium prices/balance sheet/risk? Rick Rule called it a no-brainer and said if their leaching process works it could be a big home run. Curious to hear your thoughts.

Are there other names you prefer to gain exposure to rising uranium prices?

Thanks

Q: Hi With respect to Steve's question, about Series 1 debentures trading at $136-$138 currently and applying for new debentures through Rights for a price of $133, is it not true that Debentures currently trading also have an embedded additional value of $3.25, quarterly interest ( $3.25x4=$13.30 annual), payable on October 1st. Whereas, the debentures acquired through rights will be issued only on October 6 and are not eligible for that interest for quarter Jul-Sep and hence the price differential ?

Thank You

Q: Peter,

A bond fund will have a duration. I was told by a rep at the $$$ show that it can refer to the percentage change in value of the fund when interest rate changes. IE if duration was 3, then a 1% change in interest rates will create a 3% change in the value of the fund. Is this true?

If this is not true then please explain the proper meaning of duration.

Thank you

Paul

Q: As I write this the CSU.RT debenture purchase rights are trading at $.005 and the series 1 debentures are trading in the range of $136-$138. If my math is correct, for a few pennies worth of the rights one can purchase $100 face value of the debentures at $133 which is a $3-$5 discount to where they are currently trading. Is this a no brainer or am I missing something? Why are the CSU.RT rights trading so cheap?

Q: Hello 5i, common question for you but I have very little bond exposure and was looking to start building a fixed income portfolio. Can you give me your current top 5 bond picks (assuming ETF's). This can be USA or Canada bonds.