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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: This ETF interests me but I really have very little understanding of convertible bonds. Can this fund be considered a pure fixed income option? Having been burned twice on preferred shares I’m a bit leery on two fronts, investing in things that are neither equity nor fixed income, and investing in things I don’t understand. CVD has held up over the past 5 years while delivering a pretty good yield. What are the risks going forward and would you have any concerns about capital preservation?
Read Answer Asked by Stephen R. on October 15, 2021
Q: Hi 5iResearch team
I am in the process of doing re-weighting. I know the above etfs. The US bond etf (VGSH) has very low interest yield compared to the CAD ones (XSB, ZCS, and ZCM).

1. Are there other US bond etfs that are similar to the above CAD ones in terms of yield and risk?

2. ZUP is in CAD$ and US$. Can you please recommend two more (CAD or US) etfs that are similar to ZUP in terms of yield and risk?

Thank you for the great service.
Read Answer Asked by Ahmed on October 14, 2021
Q: Hi Team,
Could you suggest Canadian ETFs of the following sectors for Senior incomes :
1 /Reit 2/ Utility 3/Prefer 4/Bank/Financial 5/Energy.
Please deduct as many question credit as needed.
Thanks as always,
Tak
Read Answer Asked by Tak on October 12, 2021
Q: Why would POW issue new PWF preferred since PWF is now part of POW? To redeem old issues may be?

Any news of the Sep23 meeting for STC share consolidation? Strange it takes so long.

Thanks all
Read Answer Asked by Denise on October 08, 2021
Q: Could you please explain the difference between Brookfield's common and preferred stocks which explains why they perform so differently? According to the Globe and Mail:

BAM.A is up 29.84% ytd, down 4% in the last month BAM.PR-R is up 39.63% ytd, 97% in a month BAM.PR-K is up 45.37% ytd, up 7% in thirty days. BAM-PR-G is up 58.55% ytd and 8.26% over the last thirty days.

Why would these preferred shares be moving so much higher than BAM.A itself? Do you expect this to continue? If so doesn't it make sense to buy the preferred shares? If so, which of the series would you buy?
Read Answer Asked by John on October 06, 2021
Q: Do you like Fortis and if so which do you prefer:
Series F Perpetual
Series G Rate Reset
Series H Rate Reset
Series J Perpetual
Series K Rate Reset
Series M Rate Reset
Read Answer Asked by Gary on September 20, 2021
Q: hello
regarding preferred ENB.pr.U
I see it matures June 2022 and if renewed, will pay 3.05% + the yield of the 5-year BOC bond. Where can I find the current real time yield of the 5-year BOC bond?
Knowing where rates are today, and what they will likely be in June 2022, is this a good time to buy or is it safer to wait? What's your PRO vs CON on it?
Thanks
Read Answer Asked by Carlo on September 14, 2021
Q: Brookfield Office was taken in by Property Partners and now both have been taken private by Brookfield Asset Mgt.

You once wrote these shares are not the best choice as the office market was in difficult times....not unlike today as Covid Delta comes on.

If BAM has taken the real estate private, does the risk of default not get reduced? Making these prefs a reasonable buy below $25, Min Reset ( 5.10%) with a current yield above 5.10%?

How likely is it that Brookfield parent would let a Sub default on payments?

Dave
Read Answer Asked by David on September 03, 2021
Q: I hold Canaccord series A 5 year rate reset prefs which will reset in September at 5yr GOC + 3.21%. They also have a voluntary conversion privilege into series B floating rate prefs which pay 3 month GOC T-Bill + the same 3.21%. With the likelihood that interest rates are likely to go up from here, would you agree that it makes sense to opt for the conversion? The series A prefs have been on a tear over the past 9 months from a low near $12 to their current price close to $19. Is it likely that a large driver of the price increase is related to excitement over the upcoming conversion privilege?
Read Answer Asked by Steven on August 23, 2021
Q: These debentures are being called. If it's the intent to convert to the common shares, is it better to sell the debentures and buy the common shares. If held until Sep 9, the company converting to shares at 95% on the 20 day avg sounds like ending up with less common shares. Which way would work best?
Read Answer Asked by Ian on August 19, 2021
Q: These units are down > 60% today after an announcement that the company is doing a debt exchange and suspending cash distributions on preferred shares. I find this very surprising as the units have been steadily going up and were trading at above par prior to the announcement. Doesn't the market typically anticipate such things (i.e. if there was any reason to believe the distribution would be cut or suspended, the units would not be trading anywhere close to par). Any thoughts on this, especially given that Brookfield owns the common shares and the debt but not the preferred? Where does that leave preferred unit holders? Would it be prudent to simply take my loss and exit the position? Thanks.
Read Answer Asked by Nick on July 30, 2021
Q: Re info on Cdn prefs try:

canadianpreferredshares.ca

Hugh
Read Answer Asked by Hugh on June 21, 2021
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