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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: i see a lot of blue chip companies starting to redeem notes and not sure if i fully understand this. does this mean that companies have the money to pay back the notes which are usually higher interest and is this usually good for stock holders. manulife came out with 1 billion redemption of 4.7 usd senior notes this morning.
Read Answer Asked by hans on April 26, 2021
Q: Hi 5i,

Just looking for your opinion on the dentures of SOT.un. This would be part of my higher risk bond portfolio. It’s a 5.25% debenture (SOT.DB) due 28/02/23 currently trading around par.

The balance sheet seems strong enough to handle the repayment in 2023. I don’t think the conversion price of $10.53 will enter into the conversation.

Any concerns and your opinion would be most helpful.
John
Read Answer Asked by John on April 26, 2021
Q: I see IFC has issued a subordinated Note which acts like a rate-reset preferred. It has an 80 year maturity with resets every 5 years based on the 5 year GOC. Is there a movement away from preferred shares as a source of capital or is this just another alternative? Put another way, should I as an investor include these notes in my toolbox for future capital allocations?
Read Answer Asked by Greg on April 01, 2021
Q: Looking to establish a portfolio of higher yield equities. What are your thoughts on the above ETFs as part of the portfolio and which would be a preference if choosing only one? Have just started building recently with 1/2 positions in each of POW, PPL and BCE so far. Expect to hold 7-10 positions in total.
Thanks
Read Answer Asked by Robert on March 31, 2021
Q: Could you give me an analysis of PTY vs PFL and their respective risk profiles in this environment and the eventuality of rates rising? Which would you recommend?
Thanks for your service!
Read Answer Asked by Ozzie on March 22, 2021
Q: Suppose an investor believes that the US Treasury market is at the end of its multi decade rise and likely to collapse within the next 1-3 years. Is there a low cost way to short US Treasuries you could recommend? If so then what about at different maturities? What would be your opinion about this strategy and its risk?
Read Answer Asked by Steven on March 22, 2021
Q: Hi!

I used to own these ETFs for my fixed income exposure. I went to 0% fixed income during the downturn last year, instead using the proceeds to buy stocks that were crushed. I'd like to slowly start to build a position again in my RRSP. Am I too early? It seems like rates have started to rise and where they go is anyone's guess, but if bonds have an inverse relationship to rising rates, aren't I setting myself up to lose money? Does a laddered approach negate that somewhat? Maybe its best to start with CBO since its Corporate credit and laddered? How would you rank these in general and in order of which I should accumulate first. I realize XHY is riskier than the others.

Thanks,
Jason
Read Answer Asked by Jason on March 19, 2021
Q: Morning 5i Team, in order to add some torque to the fixed income portion of an RRSP, what do you think of the combination of these two @50% each? Better alternatives?
Thanks, Lavern
Read Answer Asked by Lavern on March 11, 2021
Q: As a follow up to my earlier question, where in you mentioned "if the focus is on bonds....", last line. I am looking for opportunities in fixed income investments. So where should the focus be, other than fixed deposits . Thanks for the excellent advice you have consistently provided over the years.
Read Answer Asked by Vinod on March 10, 2021
Q: Hi-5i,
Could you please tell me why the 10-year Bond yields are increasing? I understand the inverse relationship to the actual value of the bond, so I guess I should be asking why are 10-year bond prices decreasing? Are the holders selling? Are governments simply not buying them?
Thank you.
Read Answer Asked by Carlo on March 09, 2021
Q: I need to add some bond ETFs to my portfolio. Could you give three US dollar and
three Canadian dollar funds that you prefer .
Read Answer Asked by Roy on March 08, 2021
Q: As a follow-up to my question last week on interest rates up/down, please also advise which funds/ETFs perform best when interest rates move in either direction.

Thanks again.
Read Answer Asked by Arthur on March 08, 2021
Q: Hi,
Could I please have your opinion about the iShares Core 1-5 Year USD Bond ETF (ISTB). YCHARTS shows a 1 year return of 2.59%, MER of 0.06% and AUM of $4.856B. Shown as well is a 47% allocation to 1-3 year bonds and 43% to 3-5 years with only 6% long-term.. Do you think this is a solid choice for a US bond fund if one is looking for an intermediate term fund?
Thank you, Michael
Read Answer Asked by Michael on March 06, 2021
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