Investment Q&A

Q: I am looking at the fixed income side of my portfolio and I am questioning the wisdom of holding CLF. Now I know there can be some sense in holding bonds even when interest rates are low (ie for the yield to maturity (YTM) and for the possible capital appreciation if interest rates go even lower). But for CLF this barely applies: the avg YTM is only 0.56% and the avg duration is 2.66 years (according to the Blackrock website on Apr 27). Thus the potential capital appreciation is very capped as the appreciation would only be in the 1.5% range if interest rates dropped to 0 and yet the potential capital depreciation is much much larger if interest rates rise significantly. So one is risking capital for a very low ytm without much potential upside and if interest rates rise, a potential rather large downside. Wouldn't holding cash make more sense?

Q: Hello strictly as an'income source could you give-me your opinion,payout divi.
Tank You
Dan

Q: What are your top 5 Fixed Income ETFs (Cdn or US / International exposure) to hold long term in a RRIF or RSP in the current environment?
Thank you in advance.

Q: What are some best ETFs, Mutual Funds that is best to park temporary cash holdings? Preferably something that's safe (but not an interest-bearing savings account) with the expectation that it's better than holding actual cash and that I can sell easily to use within less than a year time-frame?

Q: Please review the current environment on this ETF and would it be worth selling and moving money to higher income geared ETF. If so, what would you recommend?

Q: I currently owned XHY and CPD in my LIRA account and have funds to increase these holding from 2 to 4 % weight. Would you be a buyer of these 2 ETF or wait ?
Thanks

Q: I have about $500000 in cash from the sale of securities and would like to
put into a very safe vehicle for several months.Can you sugggest something.
Thanks Phil.

Q: What do you think of this ETF for fixed income portion of a portfolio?

Q: I have a question about Corporate Bonds that are now deemed 'junk bonds'. Bombardier is one example.
1. Is the primary risk associated with the company going into insolvency?
2. Is there a risk, like Dividends, that the Yields on those bonds can be changed / amended later on?
3. What are your thoughts on corporate bonds like Bombardier? Are there any corporate bonds that you see as a good holding to have?

Q: What is your opinion of getting into investment grade corporate bonds at this time? Yields look particularly attractive compared to government bonds. Are there any that you would recommend?

Q: High yield funds have had a nice run up. Would you consider it too late or too risky to buy either of these funds at today’s prices? Wait for a drop?

Is there another etf that you could suggest in this area?

Thanks.

Q: Hello 5i and I hope you're well.
Under current conditions with interest rates, Feds and bank of Canada injecting so much money into the economy, would you recommend corporate bonds or T-bills ETFs. And, what terms: short/medium or long?
Thank you and be well!
Carlo

Q: Are there Canadian equivalent to TIP and STIP. I don’t want to add to my risk by not being hedged. I’m looking for a way to protect against inflation at some point. Is there another way besides inflation protected bonds?
Thanks as always for your insight

Q: If I believe that there will debt problems before this is over , does one want to continue to hold HFR. I have held it for a couple of years but would sell it if things go down to add to stocks I like. A couple of weeks ago it went way down when market crashed. I read your answer to stay put as things were a little crazy in bond market. Is it the worry of the bond holders that the companies will go under and in fact this is not a real safe holding right now as I see 1|2 of it's holdings are BBB?

Q: Would please comment on events that possibly would negatively impact on the above 3 ETFs?

Cheers

Q: Just comment in response to your statement today to Peter that government bonds held to maturity will never lose money - most government bonds trading today are trading at a premium. So if you buy at, say, $102, at maturity you will only get back $100. Loss of $2 (about 2%). This loss is accounted for in the yield-to-maturity, but is a loss nonetheless. Some of the current premiums are significantly higher than this.
Have I got this wrong?

Q: Hi Peter
What are the pros and cons of buying CLF vs actual laddered Govt bonds.
Seems CLF is easy to sell--but is there more risk in a down market?

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!