Investment Q&A

Q: Is this iShares 25+ Year Treasury STRIP Bond ETF
buyable now or is it better to wait for interest rates to rise further?

Also I don't understand how there is a yield of 3.95% (according to yahoo finance) if the underlying bonds are zero coupon bonds.

I would appreciate your overall opinion on GOVZ. Thank you

Q: Peter and team, not sure how to word this but I’ll try. When one buys a bond at less than face value [say $92] when it comes it comes due at the $100 face value, correct? On my brokers website it has a yield for semi annual and annual returns. Let’s say that’s 5% and it comes due in 3 years. Does that 5% make up a combination of the eight dollar capital gain plus the interest paid while I own it. If not how is that 5% calculated. Feel free to pick an existing bond being sold at a discount in order to answer my question. Are there any specific bonds or bond sectors that stand out as investable? I assume I’m better off, if I want to buy a discount, to wait until the next BOC announcement regarding rates.
Thanks as always
Bryan

Q: hello 5i:
We hold the Pimco Monthly Income Fund as our sole Global Fixed Income contributor. We are not displeased with it, but wonder if you favour another ETF, or mutual fund, that could replace it, or complement it. We would probably expect at least a 4.5% distribution. Ideas?
thanks
Paul L

Q: Perhaps a dumb question, but who exactly is buying the GOC 5 year bond with ytm of 3.15%?
5 yr GICs are 5+%
Inflation 6+%
5 yr investment corporates are 5+%
Prime lending rate 5.95% and virtually certain to go higher
I realize that the market is betting that rates will fall in the coming years (we’ll see), but these numbers still don’t square up with the GOC 5 yr bond price imo. Is it a liquidity thing?

Q: Hi Team,

Have you noticed all the BAIL-IN debt that's being raised right now by Canadian banks? Shouldn't we be exiting these stocks or am I misreading what is going on?

I was shopping for some short term bonds with high yields to hold to maturity and I see a number of issues where "Bail-in debt," is written in the comments on the bonds.

Q: This ETF is yielding 9.22% and running at about 40% discount. Is there anything not to like about this?

Q: I hear podcasters mentioning that you can buy some US high quality corporate bonds that are yielding 10-11%. Do you know of any, or anything remotely similar? Thank you.

Q: Hi Gent, For balancing purposes I’m looking for taxe efficient bond ETF for non register account. Looking for short term bond ETF and international exposure.

Thx

Luc

Q: VCB currently has a yield to maturity of 5.4%. I am thinking this would make the ETF a buy now given the future "bump" in NAV from maturing bonds with a high face value versus market value. Am I correct?

Q: Please recommend some good Canadian corporate bond ETF's with a bit of explanation, please

Q: Can I have your thoughts on Nationial banks cash saver account (NBC100 series A) the interest rate is 3.25%. It has a one day purchase and redemption.
I also am an x TD waterhouse investment customer and moved all of my accounts to National Bank and couldn't happier! Got rid of TD insurance also. TD continually had their hand in my pocket. I will never do business with them again.

Q: In the current bond market environment with raising interest rates how money markets funds will behave? Will they also increase to some degree? What is your opinion? I switched my bonds assets to money market funds when the bonds were tanking and this move stabilized the fixed asset part of my portfolio.
Thank you
Miroslaw

Q: Good Morning
In response to Gord's question on November 2, 2022 you indicated that the yield on CASH is 4.29%. My discount broker shows a dividend of $.84 yielding 1.67% and the closing price was $50.12.

Can you please clarify.
Thanks

Q: For price appreciation in the next 12-24 months, would you prefer a long-term ETF like XLB/TLT or an ETF with shorter duration like XBB/ZAG. Or a bit of both?
Thanks.

Q: Good morning team. I am considering "parking" some funds in a high interest savings account fund, such as HIRA-NE. From what I read, it is directly correlated to the bank of Canada rate and it happens in real time. Does it offer the same level of preservation of capital as a GIC and is the capital protected? Is this a safe place to park funds over the $100,000 threshold?

Much appreciated

Q: Both PIMCO Tactical Income Fund (9.6% Yield) and PIMCO Dynamic Income Fund (13% Yield), were mentioned on the weekend.

Their unit prices have dropped due to the rise in interest rates. I am retired and have very little exposure to fixed income. Would this be a reasonable investment to consider? One would expect if interest rates continue to rise, the units’ prices will continue to be adversely affected.

Thank you

Kim

Q: The last line in the recent article on bonds that you sent members reads, “In our minds, the better place to be within fixed income is higher-quality, shorter-dated fixed income, where you’re not taking on as much risk.” Assuming you concur with this statement, what investments do you recommend that align with "higher-quality, shorter-dated fixed income"?

Q: After seeing my bond etc holdings loosing value at every rate increase, I am considering buying some higher yielding individual bonds to hold to maturity. My trading account has available bonds issued by these two companies. Around 30 months duration and about 6% yield, including capital gains, as they are available at discount to par. would they make sense as a 1- 2% part of portfolio of retired 60 year old? How risky are these companies? Brookfield PTY,Callaway REIT,Ford Credit

Q: MORGUARD CORP 4.715% 25JAN24

is selling below par value (97.12) and is offering 7.23% semi annual yeild. Do you consider this reasonably safe? It is rated BBH. Looks pretty attractive..What are your thoughts? Thanks.

Regards,

Shyam

Q: Recall my comment last week that TD will not let me buy HSAV or many other high-interest savings ETfs. It seems I can buy "similar" EFTs if they are in US$ like HYGH for example. I have some funds in a USD trading account with the Greed Machine and thinking of a short investment in HYGH but I noticed it wasn't mentioned in the ETF and Mutual Fund article on the subject. Is this reasonable place to park some money until say January or so. I am just trying to obtain a positive return. Better suggestions are most welcome. Thanks, Dan