Investment Q&A

Q: Hello team, I have an opportunity to purchase some Bam Cumulative Minimum Rate Reset Class A Preference Shares, Series 46. Has a coupon of 4.8%. Is this something to consider for a retiree. What are the pitfalls if any and what should I be aware of when considering purchase of a preferred share purchase? How will interest rates either US or cdn affect the share price? How long should one hold onto the shares?
Thanks for the great service

Q: I made a fair amount of money on this preferred. Has it become a victim of a rate reset move?

Q: What do you think if their Rate reset Pref shares on offer today? I may not be able to buy it anyways if this doesn't get your attention soon! Perhaps you can answer about Rate resets in general under the current post Trump environment, especially if he wants Janet Yellen out!

Q: Hello,

What would be your current 3 favourite rate reset preferred shares?

Regards,

Robert

Q: Would this be a good option in lieu of a fixed income etf?

Q: Hi guys,

My portfolio is $500,000 with $450,000 in equities and $50,000 in fixed income. I just changed my asset allocation from 100% equities to 90% equities and 10% fixed income. I have $50,000 cash to invest in fixed income and I put my first tranche of $10,000 in CPD for the yield and to gain from rising rates if and when they occur. I was reading some previous questions and you talked about having ETFs as a minimum 5% weighting because of the number of securities they hold. In this case with CPD, it is currently 2% and I will add to it as opportunities arise. I debated splitting the 5% between CPD (3%) and HPR (2%), which is an active traded preferred share fund. Is this recommended for a total weighting of 5% in preferred shares or should I just stick to CPD. My other 5% weighting will be in a laddered corporate bond ETF since I think it provides better protection against rising rates that a government bond ETF and also has a better yield. Agree?

Thanks for your help,
Jason

Q: I bought a small position in the DH debentures ... I hold a full position in DH which was murdered . Does the debenture purchase make sense ... I got it for $98.00 ... ( not the BEST price but it is a 2 year hold for 6% payout )

Q: Hi 5i Team, can you please explain the impact of interest rates of CPD. I understand that last year the rate cut had a negative impact on the ETF and that a couple of years ago talk of rising interest rates hurt preferds. Can you please explain the impacts of either rate increase or cut on CPD?
Thanks

Q: Hi Team,
Can you please provide an overview of Union Gas (UNG-C or UNG-P)? What is it's risk/reward profile? TD Waterhouse shows a tiny market cap of ~$7.5M with $1.8B revenue TTM. Is that correct? I don't understand the corporate structure (searches say it is a subsidiary of Spectra Energy with assets of more than $7B). Union Gas issues bonds in its own name though. Can you please shed some light on this?

Thank you, Michael

Q: please explain the offer at 1000.00 per unit & is this dilutive to existing share holders and would this explain the drop in share price . buy hold or sell thanks neil

Q: Can you please comment on the preferred shares, series B, specifically the dividend payment terms and whether a change in control of GMP would trigger a requirement of the company to redeem the shares at par. Lastly, what would constitute a change of control under the indenture and what is your assessment of a potential change in control in the company prior to year end? Thx

Q: BBD.PR.B It seems to me that Bombardier cannot go broke - government support etc. Would this not mean that the preferred shares of BBD.PR.B ( cum redeemable ) are relatively safe? And if so why is the dividend so high (8.21%) ?

Q: Hi,

Is now a good time to invest in a preferred share etf? It is a non-registered account that is focused on income. How safe are preferred shares in a rising rate environment?

Thanks,
Jason

Q: reset preferreds have a next call date and a terms of reset ie 5yr GoC + 2.50% Does this rate apply to the next reset date or can the company set another rate to apply for the next reset date thanks Paul

Q: I don't know if you cover preferred shares but what is your opinion about this new issue from Bank of Montreal on a five year rate reset preferred share for five year with an annual coupon of 4.85%

Q: Hi
I would appreciate your view on the recent Capital Power minimum reset preferred issue CPX.PR.G. It has a floor of 6% yield with upside if interest rates eventually go up. I am aware that the Alberta government is planning to retire colas assets and the compensation may fall short. My thought is the prefs would be a relatively safer way to capture yield. Your perspective is appreciated
Thank you
Steven

Q: Hello & Happy Thanksgiving to all.

I’m considering lending my 18-year old daughter some money at 3% so that she can invest in securities that yield 6-7% (preferreds, etc). The favourable dividend tax credit, and other tax credits (personal exemption, tuition etc) should keep her tax bill close to zero.
Would you suggest an etf, like CPD, or would you pick a basket of individual names like ENB, BCE, NPI prefs?
At this stage in the cycle, would you go Rate Rest or Perpetual?

Any website you can suggest that rates the various preferreds? The TD monthly Preferred Report is the only one I know of.

Thank you

Q: Hi Peter and team, If interest rates go up in US but down in Canada what is the likely impact on CPD. Also, in a broad market selloff of greater than 10% how strong is the correlation of CPD to the overall market. Thanks

Q: I owned COS from the IPO and was always happy with the yield. Now, of course, I own Suncor and am not happy with the yield. I am thinking of selling SU and buying a preferred share ETF, either ZPR or CPD or perhaps both, for the yield. What do you think? I am retired and living off dividend income.

Q: Please give me all necessary information to make a buy decision,and would you buy this GMP Preferred B? This was recommended by Jerome Hass on BNN today. I will also echo what others had said and kudos to Ryan M. for his appearance on BNN.