Investment Q&A

Q: My question is about convertible debenture. What are they? What is the difference between a good one or a bad one? For instance, exchange income corp. Just put one out at 5.25%
Thx

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Read Answer Asked by Todd on November 17, 2021

• Unity Software Inc. (U $39.54)
  • $39.54 Cap: $16.54B
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Q: Hello,

There was a question this morning about U convertible senior notes. What are they exactly and is that a positive for the stock? Your insight is appreciated.

Thank you very much!

Marc

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Read Answer Asked by Marc on November 16, 2021

• Unity Software Inc. (U $39.54)
  • $39.54 Cap: $16.54B
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Q: Hi! Could you comment on Unity Proposed $1.5 Billion Offering of Convertible Senior Notes. Thanks.

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Read Answer Asked by Stephane on November 16, 2021

Q: Given higher inflation, is it a given my fixed rate reset preferreds will decline in price? How much does term to maturity impact price? Am I correct in presuming a short term to rate reset date would benefit price inasmuch as the reset rate would be higher if the B of C rate has risen in an inflationary scenario? Thank you.

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Read Answer Asked by Ralph on November 11, 2021

• Artis Real Estate Investment Trust Preferred Units Series E (AX.PR.E $20.90)
  • $20.90 Cap: $2.01B
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• Birchcliff Energy Ltd. cumulative redeemable preferred shares series C (BIR.PR.C $24.97)
  • $24.97 P/E (TTM): 93.29X Cap: $6.64B
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• Power Financial Corporation 6.00% Non-Cumulative 1st Pref Series I (PWF.PR.I $24.99)
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• Dividend 15 Split Corp. II Preferred Shares (DF.PR.A $10.74)
  • $10.74 Cap: $203M
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Q: I am hoping for three perpetual preferred shares trading near par with a yield of at least 4.5%.

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Read Answer Asked by Cory on November 03, 2021

• George Weston Limited 5.80% Preferred Shares Series 1 (WN.PR.A $25.40)
  • $25.40 P/E (TTM): 11.77X Cap: $33.94B
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Q: just a follow up to your answer to cory. These preferreds have come off their premium lately. Wondering if there is an announcement of redemption that i have have missed. they have been out there for a long time!

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Read Answer Asked by kelly on November 01, 2021

• George Weston Limited 5.80% Preferred Shares Series 1 (WN.PR.A $25.40)
  • $25.40 P/E (TTM): 11.77X Cap: $33.94B
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Q: How long has the issue been trading?

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Read Answer Asked by Cory on November 01, 2021

• Dividend 15 Split Corp. Preferred Shares (DFN.PR.A $10.47)
  • $10.47 P/E (TTM): 22.65X Cap: $793M
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Q: I have been encouraged to invest in this dividend split corp paying about 5.45%. Still explain the risk/benefit. Thank you so much.

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Read Answer Asked by Victoria Y on October 25, 2021

• Quarterhill Inc. (QTRH $1.11)
  • $1.11 Cap: $132M
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Q: Peter and His Wonder Team
QTRH just completed a $50M Convertible Debenture. Please explain in laymans term a convertible debenture.
Please give the pros and cons of this transaction. The company seems to think it is positive but as an amateur I am not sure. Thanks...your professional objective insights are always of great assistance.

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Read Answer Asked by Ernest on October 21, 2021

• Power Financial Corporation 6.00% Non-Cumulative 1st Pref Series I (PWF.PR.I $24.99)
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Q: I noticed that this is being called. How long has this share bee in existence? Isn't it a fairly rare occurrence for perpetuals to be called?

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Read Answer Asked by Cory on October 20, 2021

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.54)
  • $13.54 P/E (TTM): 23.81X Cap: $1.05B
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• BMO Laddered Preferred Share Index ETF (ZPR $11.86)
  • $11.86 P/E (TTM): 11.03X Cap: $1.42B
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Q: I'm thinking of switching my CPD to ZPR because the return of ZPR has been significantly higher and the dividend is slightly higher. Curious what your thoughts are. Do you prefer one over the other? Any reason to own both - half in one, half in the other?

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Read Answer Asked by Carla on October 18, 2021

• iShares Convertible Bond Index ETF (CVD $18.17)
  • $18.17 Cap: $100M
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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?

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Read Answer Asked by Stephen R. on October 15, 2021

• BMO Mid Corporate Bond Index ETF (ZCM $15.64)
  • $15.64 Cap: $1.23B
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• BMO Short Corporate Bond Index ETF (ZCS $14.04)
  • $14.04 Cap: $4.39B
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• iShares Core Canadian Short Term Bond Index ETF (XSB $26.95)
  • $26.95 Cap: $3.03B
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• Invesco Preferred ETF (PGX $11.53)
  • $11.53 P/E (TTM): 27.78X Cap: $3.87B
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• iShares U.S. Preferred Stock (PFF $31.61)
  • $31.61 P/E (TTM): 28.43X Cap: $14.51B
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• Vanguard Short-Term Bond ETF (BSV $78.75)
  • $78.75 P/E (TTM): 131.11X Cap: $38.51B
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• BMO US Preferred Share Index ETF (ZUP.U $19.00)
  • $19.00 P/E (TTM): 21.44X Cap: $11M
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• BMO US Preferred Share Index ETF (ZUP $20.35)
  • $20.35 P/E (TTM): 21.44X Cap: $43M
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• Vanguard Short-Term Government Bond ETF (VGSH $58.73)
  • $58.73 Cap: $22.85B
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• Vanguard Short-Term Corporate Bond ETF (VCSH $79.71)
  • $79.71 Cap: $34.42B
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• iShares 1-3 Year Credit Bond ETF (IGSB $52.90)
  • $52.90 P/E (TTM): 284.48X Cap: $22.01B
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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.

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Read Answer Asked by Ahmed on October 14, 2021

• Good Natured Products Inc. (GDNP $0.02)
  • $0.02 Cap: $5M
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Q: I was wondering if you heard any news that would have caused the halt in trading in this stock yesterday? Still in effect this morning.

Thanks

Dave.

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Read Answer Asked by David on October 14, 2021

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.54)
  • $13.54 P/E (TTM): 23.81X Cap: $1.05B
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• iShares S&P/TSX Capped Financials Index ETF (XFN $66.86)
  • $66.86 P/E (TTM): 2.72X Cap: $1.71B
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• BMO Equal Weight REITs Index ETF (ZRE $22.37)
  • $22.37 P/E (TTM): 54.28X Cap: $596M
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• BMO Equal Weight Utilities Index ETF (ZUT $24.51)
  • $24.51 P/E (TTM): 40.82X Cap: $726M
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• BMO Laddered Preferred Share Index ETF (ZPR $11.86)
  • $11.86 P/E (TTM): 11.03X Cap: $1.42B
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• BMO Equal Weight Banks Index ETF (ZEB $48.19)
  • $48.19 P/E (TTM): 12.49X Cap: $4.03B
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• BMO Equal Weight Oil & Gas Index ETF (ZEO $77.53)
  • $77.53 P/E (TTM): 43.8X Cap: $225M
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• Global X Active Preferred Share ETF (HPR $10.09)
  • $10.09 P/E (TTM): 8.39X Cap: $944M
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• iShares Canadian Financial Monthly Income ETF (FIE $8.95)
  • $8.95 P/E (TTM): 17.77X Cap: $1.16B
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• iShares Equal Weight Banc & Lifeco ETF (CEW $23.01)
  • $23.01 P/E (TTM): 17.12X Cap: $265M
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• iShares S&P/TSX Capped Energy Index ETF (XEG $17.75)
  • $17.75 P/E (TTM): 37.74X Cap: $1.58B
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• iShares S&P/TSX Capped REIT Index ETF (XRE $16.09)
  • $16.09 P/E (TTM): 30.38X Cap: $1.50B
  • View XRE Profile
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• iShares S&P/TSX Capped Utilities Index ETF (XUT $30.89)
  • $30.89 P/E (TTM): 44.79X Cap: $325M
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• CI Canadian REIT ETF (RIT $16.96)
  • $16.96 P/E (TTM): 99.97X Cap: $441M
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• Eastfield Resources Ltd. (ETF $0.02)
  • $0.02 Cap: $1M
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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

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Read Answer Asked by Tak on October 12, 2021

• Sangoma Technologies Corporation (STC $7.75)
  • $7.75 Cap: $264M
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• Power Financial Corporation (PWF $36.31)
  • $36.31 P/E (TTM): 11.57X Cap: $23.95B
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• Power Corporation of Canada Subordinate Voting Shares (POW $57.81)
  • $57.81 P/E (TTM): 13.72X Cap: $37.04B
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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

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Read Answer Asked by Denise on October 08, 2021

• Power Financial Corporation (PWF $36.31)
  • $36.31 P/E (TTM): 11.57X Cap: $23.95B
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Q: New to fixed income investments. Received the following from TD. New offering Power Financial Corp 4.50% Non-Cumulative First Preferred Shares, Series 23. Can you explain what is offered, what should i be looking for as far as quality and is this a good first step?
Thx

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Read Answer Asked by Todd on October 07, 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?

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Read Answer Asked by John on October 06, 2021

• George Weston Limited 5.80% Preferred Shares Series 1 (WN.PR.A $25.40)
  • $25.40 P/E (TTM): 11.77X Cap: $33.94B
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Q: If George Weston gets privatized what happens with this issue?

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Read Answer Asked by Cory on September 29, 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

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Read Answer Asked by Gary on September 20, 2021