skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: How do Preferred shares typically respond to changes in interest rates?
Read Answer Asked by Gary on January 24, 2019
Q: Aurora Cannabis announced an offering of convertible senior unsecured notes due 2024 and valued at $300 million USD. Net proceeds from the offering of the notes are to support its Canadian and international expansion initiatives for future acquisitions. The share value dropped ~10% on the news. May I have your thoughts on the market reaction? Thank you.
Read Answer Asked by Martin on January 18, 2019
Q: I HAVE CONSTELLATION CSU.DB AND AM LOOKING FOR ANOTHER DEBENTURE. YOU HAVE RECOMMENDED CJT.DB IN THE PAST. OF CJT AND CHR WHICH IS YOUR PREFERENCE. ANY OTHER DEBENTURE YOU MAY CONSIDER TO BE WORTHY WOULD BE WELCOME. THANKS
Read Answer Asked by Maureen on January 16, 2019
Q: Would you please help me understand how the preferred share TD.PF.B resets it’s new interest rate later this year. The prospectus states that the new interest rate will be equal to sum of the Government of Canada Yield on the Fixed Rate Calculation Date plus 2.27%. My two questions are 1) What is the present Government of Canada Yield as mentioned in the prospectus to be found on the Bloomberg Screen GCAN5YR page, and 2) What is the Fixed Rate Calculation date? Is it July 31 2019 as mentioned in various parts of the prospectus. Thanks ... Cal
Read Answer Asked by cal on January 15, 2019
Q: Ecn's preferred shares, ECN.PR.A, are down $5.00 or so since their issue last year, pay over 8% & their issuer ECN seems to be doing well. Is this quite a risky investment with a dividend of 8% percent for someone seeking yield? Is it fear of rising interest causing the drop or is there a problem with ECN that I'm unaware of? Thanks as always for your sage advice.
Dave
Read Answer Asked by Dave on January 14, 2019
Q: Hello. Happy New Year

I own several preferred shares issued by different companies... ENB(reset), FTS(fixed), FFH(reset), TRP(reset). I bought them many years ago and have some loss. Since they're all outside my RRSP and TFS, I'm thinking to sell all, replace them with new preferred shares issued by another companies and then claim a capital loss. Do you think it is a good idea?

Questions:
1) What preferred shares do you suggest I should buy, fixed reset, perpetual?
2) Which companies preferred shares are ok to buy?

Thanks
Read Answer Asked by Esther on January 14, 2019
Q: Hi being a holder of pbh for many years I sold
Half on the way up at $100 and the other half on the way down at $100 .
I have been 50 % cash for the last while and am now starting to dip my toe back in.
I have taken a full position in Pbh.db.g .
Can I have your opinion on this move.
Kind regards Stan
Read Answer Asked by Stan on January 10, 2019
Q: I am looking to purchase some prefer shares because the prefer shares price down quite a bit in some cases. I compared two prefer shares offered by the same company "BrookField Asset Management Inc". BAM.PF.D , current price $21.10 yield 5.81% vs. BAM.PF.I current price $25.58 yield 4.63%. Both have the same face value of $25, why priced so differently on the market, are their risks different? So in general, how to pickup a prefer share from others?

Thanks,
Read Answer Asked by Joseph on January 08, 2019
Q: I purchased 300 shares of ENB.PR.V on TSX @$21.25 but Itrade charged me $29.24 USD, on inquiring with them, they told me this PR would only be purchased in USD. I understand dividend is paid in USD . How could I tell when I purchased them (for future) since quotation was in Canadian dollars? Lots of Canadian companies pay a dividend in USD
Thank you
Cec
Read Answer Asked by Cecil on January 08, 2019
Q: I initially purchased these preferred shares when they were yielding over 7% for income in my RRSP. Today they are yielding over 9% as the price has fallen considerably. Normally I would be concerned with an investment yielding 9%, but ECN.PR.A have a minimum dividend (6.5% for $25 face value). Do I have reason to be concerned or do you see this as a buying opportunity especially since they have the minimum dividend guarantee (as long as the dividend is being paid)?
Read Answer Asked by Robert on December 31, 2018
Q: Would you be able to list a number of convertible debentures from’safe’ companies and at reasonable rates?
Thank you, Team!
Happy Holidays! Let’s hope for a better 2019...
Read Answer Asked by Sigrid on December 27, 2018
Q: Seasons greeting to the 5i team. I hold the C series preferred shares of ECN. Like many others my cost for this rate reset preferred is much higher. I understand the company has the option to redeem these shares at a specific price at different times in the future. I am wondering if at some point in the future (if held until then) the company is obligated to buy them back at par value? In other words as a shareholder can I force the company to take them back at some point and receive the $25 par value? Thanks.

Mario.
Read Answer Asked by Mario on December 27, 2018
Q: Hi team, can you tell me if there is any benefit to owning Preferred shares of a company or a bank as apposed to owning the regular shares. Is one better than the other, if so how and when would you recommend one over the other. Could you possibly recommend some based on your answer. Thanks, Nick
Read Answer Asked by Nick on December 21, 2018
Q: You answered a question on ECN.PR.C I would like to ask a similar question about ECN.PR.A. It has dropped a further $3 since last Thursday. Do you see any particular weakness other than the general conditions you have answered on previous preferred reset questions? Is the share buyback of ECN common shares weakening the company's position of paying interest? Most of my resets have been called back at reset date and new stock issued at lower rates so I have not replaced them. Is that a possibility here and with the C's? (deduct what you feel appropriate)
Thank you and Best wishes for the Christmas Season
Read Answer Asked by Paul on December 19, 2018
Q: Recently, I asked about adding to ECN.PR.C at $21 and you replied it was fine to hold but not to add (thanks). Now it's $17 and paying 9%. It is a rate reset preferred and I thought the guaranteed floor was 6.25% upon reset but you recently said otherwise in another reply.
Should I buy it now and what is the reset minimum?
Thanks.
Read Answer Asked by Steven on December 18, 2018
Q: Thinking of selling CPD and averaging down on ECN.PR.A My reasoning indicates that the reset return on CPD portfolio will continue to fall as the yield flattens or inverts.
In the case of ECN.PR..A if 5 year yield is at 1.06 or lower the yield is still 6.25%. Basically I’m saying there is a floor under ECN.PR.A but not CPD. What is your opinion ?
Read Answer Asked by Roy on December 18, 2018
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!