Investment Q&A

Q: Hi group assuming some sort of recession next year along with present pullback what is your top 10 picks in order of preference / Entry points $ targets. Ignore sectors and US verses Canada Thanks

Q: Bonds / fixed income are down substantially
Do you see a recovery in their values in 2023 and can you support your view
Thanks

Q: For periods under 90 days, which do you recommend for cash, BMT104 or BMOs ZMMK?

Q: Why has this ETF not increased in yield? Yield has been flat for over a year yet short term rates have skyrocketed. Why the lag?

Q: Good Evening 5i,

I am a retired income investor with very little knowledge of and exposure to bonds.

Looking for your thoughts/opinions and suggestions on aggregate bond funds.

These funds apparently give exposure to government and corporate bonds, and to bonds maturing in the short, medium and long term.

Is there something worthwhile here?

Thanks very much.

Q: Could you provide your view on ZMMK as a safe vehicle for a liquid cash investment and indicate any concerns you see. Thanks for the help.

Q: Other than half a dozen or so major banks (i.e. BNS), there are a number of smaller banks such as Home Equity bank, Fairstone bank, Canadian Western Bank, ... If I want to acquire GIC's with any of these smaller players, should I be concerned? I have visited the CDIC site to see if they are covered and all appears to be fine but there could be other issues I am not aware of. Thanks.

Q: Hi 5i,

Further to Dennis's question on the 21%, the comments may pertain to how much of AQN's debt is floating and not the rate they are paying.

Just a thought!

Q: I am looking at buying either a GIC or a Bond to hold to maturity. Is there any advantage over one or another, other than the CDIC coverage for GICs?

Q: if you would buy one bond etf in canada for growth, growth being the key word which one would it be. dave

Q: Hi,
Just wondering what would be the best type of an investment vehicle for money I will want back in possibly a years time? GIC's are giving over 5% but would a bond fund supply a better overall return and if so what bond fund duration would be best for this time frame? Appreciate any suggestions.
Thank you.

Q: What are your thoughts on this US Private Credit ETF (VPC)?

Q: I read an article in the Globe and Mail this morning where inflation-linked bonds were touted as a good investment at this time. Would you agree with that strategy?
Whether you agree or not could you please give the reasons why. If you do agree where can we buy these bonds and which would you recommend?

Q: The Bank of Canada hiked their policy rate 50 bp's today - will this be priced in to Fixed Income instruments (GIC's/Bonds/TBills etc) immediately or would it have already been priced in in anticipation.
Thanks

Q: How safe if the PSA? I ask because I know some commentators are talking about a “credit event” perhaps happening sometime in the next few years, and I remember some money market mutual funds having some kind of unexpected difficulty in the past.

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.