Investment Q&A

Q: Dear sirs,
Looking for your insights into the outstanding debt of both company's, noting the large discounts in current pricing. Assuming I am comfortable with the volatility and can hold the debentures should one expect to receive par value on maturity
Thank you,

Q: Hello,

When it comes to bonds and interest rates I am like a deer in headlights. What would a negative interest rate scenario impact an etf like VSB and VSG or a longer term bond fund?
Thank you and stay safe!

Q: This Chorus Aviation debenture has dropped like a stone. Would this investment be at risk keeping the high indebtedness of the company in mind?
Thank you for your excellent service, always!

Q: Hi team
I have the RBC monthly income fund, ranked as 4 star by morning star
how does it compare to XTR in a non-registered account for some income and
growth is secondary thanks

I also have a P H & N monthly income fund and could not find the symbol
if you can compared the 3 to hold for income and some secondary growth
it would be appreciated
thanks
Michael

Q: Hi 5i Research Team,
I am interested in investing in both Canadian and US T Bills etfs. Please recommend 1 or 2 in each.

Thanks

Q: XCB is quite negative this morning. Problems with the BBB bond exposure in Canada ?

Q: Hi team
looking for an etf for real return bonds (short term) vs XSB which is also short term
what is the main difference in terms of safety and returns between the 2 ? it is meant to be in a RRSP
thanks
Michael

Q: Hello,
I need a little education...
What is an hybrid debenture
and
what is Adjusted EBITDAR
the alphabet soup is growing !
Thanks
CDJ

Q: Hello, I would like to get your best guess as to how the cdn bond market would react under 3 different scenarios.

1. Rates stay static for the next couple of years as we slowly make our way out of this and there no other real shocks to the system.

2. Rates rise as things improve much quicker than expected and the economy booms along with higher inflation than expected.

3. The situation slowly get worse and prolonged and rates fall to below zero.

I am confused at the best of times but these days are setting things to a whole new level.

Currently own xbb and vcit as fixed income. Better options?

Thanks for all you are doing it really is helping.

Q: Hello
Can you suggest an American ETF like VCSH but with a shorter duration for corporate bonds which is also less volatile?
As well, do you know of any American ETFs like SHY but with shorter duration for US Treasuries? SHY includes Treasuries of up to 3 years.
Thanks

Q: I have hard time to understand as to why the bid price of a BROOKFIELD ASSET MANAGEMENT bond maturing on 03/08/24 (Cusip 11257ZAD yield 5.04) is only 89.424 today?
Other corporate bonds in my portfolio have not dropped as much. For instance, a Telus bond maturing in 2023 has a bid price of 99.802.

I thought BAM bonds were of high quality since they are rated A -

Are there any issues with respect to the financial strength of BAM bonds?

Would you recommend holding or selling this BAM bond??
Thanks

Q: I hold a couple of Ford Credit Canada bonds with one issue maturing in 12 months and the second issue in 36 months. With today's downgrade I've taken a hit on the market value of the bonds, particularly the longer maturity. Is there a risk of default by Ford Credit on these bonds?

Q: would you agree with the expectation of lower rates for longer and if so, what about selling Pref shares which have been killed and switching to a high yield
bond etf or fund? Does this make sense given the current sell off in credit?
Any recommendations for a purchase ? thanks

Q: I have been liquidating my holdings in drift and draft over the last month or so, and I am currently about 25% in cash. Can you recommend a relatively a safe place(s) (stocks, etfs, bonds, etc) that pays a dividend/interest for the next 6 months to a year.
Cheers,

Q: Many high quality bond ETFs are trading at substantial discounts to their NAV. How can this be as the ETF should be representing the value of the underlying bonds? Are bonds being sold so fast that the market makers just can not keep-up with the pace? If XCB and XRB return to their NAV value this could be a buying opportunity? Thanks Ron

Q: I was reading your answer to Dennis about fixed income bonds from banks. I know very little about CBO and Bank bonds but asssume they are near risk free. Do you think there is an arbitrage opportunity in borrowing on a secured line of credit to buy a bank bond? Any particular bond that you can suggest and can they be bought on online self directed brokerage accounts with Canadian banks?
Regards

Q: Is there a US dollar equivalent?

Q: I am a 73 man relying largely on my RRSP for income and it is being eroded very quickly. I have no bonds or other fixed income investments preferring instead preferably dividend paying equity’s. know little about bonds and other fixed income products and would appreciate any advice you have on specific investments I should consider.

Thank you as always for your advice.

Don

Q: Thanks for all your hard work during this uncertain period.

I'm transferring conservative Mutual fund monies (to get out from under their fees) over to Questrade.

I want to keep that money conservative. I'm not drawing back, but just trying to keep my allocation.

I've read that similar bond ETFs are not the best way to go forward. Some recommend cash, even US cash but this seems too fearful.

Please recommend an ETF option for this situation.

Q: Hi Peter & 5i,
Thank you for all your professional advice with your years of experience and calmness during this market turmoil.
My question is about bonds.
I have a portion of my fixed income in CBO.
Currently a retail investor can pick up some fixed income bond/debenture from the above mentioned banks with longer term maturities (say 2028 to 2030, they are callable between 2024 and 2026) with a 4% interest rate at current valuations (which are below $100). Even if they did get called then you would get the capital gain and the better interest rate for 4 to 6 years.
Do you think it would make sense to sell a bit of CBO and buy a few of these bank instruments in the current environment?
Your opinion is much appreciated. Thank you.