Investment Q&A

Q: I believe athabasca has around 200 milion in cash and around 175 milion in debt. Is there a reason why the company would not use some or all the cash to retire the debt?

Q: Do the American Muni bonds make a good investment for a Canadian taxpayer? I understand Muni bonds are tax-advantaged for US taxpayers and may not be available to Canadians (?). And/Or : What about the new I Bonds I the US, now much publicized in the US financial press, for example Barrons has an article on the new series I Bonds in its November 1 issue. Do such securities make sense for a Canadian taxpayer, assuming they are even available to Canadians? Is there an equivalent in the Canadian bond world? (Has to be available through online brokers-- instruments are not, e.g CASH and HSAV are not available at RBC-DI but one of the above is available on iTRADE)

Q: When you last commented on PDI you said "Okay with". Noting the one year return on fund value is minus 15% but the long term returns seem to be in the 8-10% range. I am in it for the dividend (I'm retired). Do you think the ~ 13% dividend is safe long term ? And how much of that 13% is ROC ? What are your overall thoughts on this one ??

Q: I hope to retire in about a year. I'll have a comfortable defined benefit, I've used the portfolio analysis to diversify my investments. I have a sizeable cash amount earning nearly nothing at a bank. I have contemplated GIC's but don't like the idea of having my funds locked up in the event I would like to direct it to a project or investment .
Would there be a ETF /bond that would be relatively safe that would mirror the GIC returns?

Q: Back in June I asked about moving some XSB to XLB and you suggusted stick with XSB for another 3 to 5 months. I think I should start to switch some XSB to XLB. Does this make sence or is there another long term bond fund that would be better? Holding period of 5 years or longer.

Thanks Greg

Q: About a year ago I sold half of my holdings in ZAG and put the proceeds into XSB. I am now thinking of selling XSB and putting the proceeds back into ZAG. Just wanted your thoughts on this move. Thank You!

Q: Can I get you thought about buying CSU.DB? Is it a good value purchase at this point and where does it fit in a portfolio? Merits and risks of this holding?

Thanks

Q: How do you compare Utilities to Bonds for income and appreciation when interest rates stop rising or decline.

Thanks

Carl

Q: Is it time to switch from STIP to TLT?

Q: In tuesday's globe and mail, Tom Czitron recommeded buying mid term (5-10 year) federal, provincial government, and corporate bonds because they seem to be in the sweet spot between lower risk and higher opportunity, especially if inflation declines and economic growth wanes.
1. Do you agree?
2. Can you recommend names of bonds that fit this bill?
3. please indicate order of buying (best to worse), if any.
thanks

Q: These two "inflation-protected" bond ETFs turned out to be extremely disappointing investments. I don't know whether it's poor investment strategy or some other factors, but these two ETFs didn't provide any intended inflation protection, they behaved just like all other bond ETFs dropping like a cannonball when FED raises the rates. In response to my question on Sept 23, you mentioned that increased distributions may provide some comfort here, but both ETFs decided to cancel October dividend, so stated yields are completely meaningless now. I hold these two in taxable account, do you suggest to continue holding them hoping for a recovery or just to sell them both for tax loss and replace with some other bond ETFs that have better recovery potential? If it's the latter, what replacement would you suggest for STIP and for TIP. Thanks.

Q: I am looking for an etf that allows me to buy long-dated US Treasuries in canadian dollars. In other words, like TLT but in CAD.

Q: What environment would TLT perform the best? If the fed goes on hold will TLT effectively be flat, in other words does it take a decrease in the fed funds rate for TLT to have a significant move? What might it take for TLT to go from current price of $96 say to $125. Is a recession good for TLT?
Thanks
Rob

Q: hello 5i:
we hold some PFFD, but your system doesn't seem to recognize that ETF.
Question: would you expect TLT and PFFD to track very closely? Their charts look similar on a 5 year scale.
If so, and as the yield on PFFD is much higher than that of TLT, would not PFFD have a signicantly higher total return over almost any time horizon?
thanks
Paul L

Q: Rec'd an email offering the following:
KEY FACTS
Canadian Government Bond
CA135087VH40
9.0% Fixed
12 Month rolling*
Interest Paid Quarterly
Minimum $100,000.00

1 YEAR TERM - 9% FIXED RATE - INTEREST QUARTERLY - LIMITED AVAILABILITY

Secure Nowicon
REGULATORY

The transmission of data or information over the internet or other forms of networks may not be secure, and is subject to possible loss, interception or alteration while in transit.

The Releasees do not assume any liability for any damage you may experience or costs you may incur as a result of any electronic transmissions over the internet or otherwise within the Site, such as transmissions involving the exchange of electronic messages of any kind (including those which may contain your personal information).

In no event will the information you provide online be deemed to be confidential, create any fiduciary obligations to you on our part, or result in any liability to you on our part in the event that such information is inadvertently released by us or accessed by third parties without your consent.

Please note that alternative and secure means of communicating with us over the internet are available to our Online Banking customers.


BMO

Does this product exist? or is another scam email?

Q: HI 5I,

I have been reading, listening to my financial advisor and seeing some answers on your question blog that there may be an opportunity with bonds. I like ETF's the last while, so can you give me your advice on some ETF's that incorporate a high level of bonds that may see some upside if bonds were to have some capital appreciation. Thank-you

Q: I am waiting for an opportunity to buy back into bonds
My preference was tlt as the go to investment.
Recently a new etf has been introduced UTEN which is a 10 yr us t- bill.
It’s present yield is about double that of tlt.
Would you expect both to react the same if and when interest rate increases stop and actually reverse direction

Q: We can get more then 4% on a one year GIC right now.Why would you choose a bond fund that yields lower right now?
Is it only because of the possible capital appreciation?
Could you please shine a light on this

Q: Great October Market Report. I notice that in the 2008 and 2020 periods, job opening numbers began to decline only after higher rates had plateaued for a period of time. Today, job opening numbers have started to decline before higher rates have begun to plateau. Does this suggest the FED has gone too far to fast...and is poised, or could be forced, to quickly pivot? I'm just looking for a good reason to step into ZAG, or XBB for some decent yields and opportunities for capital growth. Thanks as always.

Q: what is your thinking about bonds right now.Can you explain how they work with their yields and resets.Are you recommending any bonds or bond funds right now?
Which ones if so.Do you think that the bonds have sold off too much right now?