Q: Could you provide the details of the MSI convertible bond please?
Thank you Phyl
Thank you Phyl
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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: I own six reset preferred shares; AIM.PR.C (-48%), AZP.PR.B (-44%), BRO.PR.N (-39%), DC.PR.B (-41%), MFC.PR.H (-13%), and PPL.PR.G (-30%). Would it make any sense to sell all these these reset preferred shares, take my losses to reduce other capital gains, and repurchase them after 30 days? Or am I better off to just sell them or keep them for a potential recovery? I would be grateful for your recommendations. I have no need for income. I used reset preferred shares as a replace for bonds, which was a huge mistake.
Q: Hello Peter and team: I am looking at the above rate reset preferred shares, both of which have a minimum reset rate of 5.75% at maturity and are currnetly yielding approx. 5.7%.
Assuming that interest rates are not set to rise substantially in the next few years, what other factors and risks may cause these preferred shares to drop in price and do you think that these are safe to hold for the yield for a 5 year+ hold in a TFSA. Is there any difference between the M & K series and which would be preferable to hold at this time.
Thank you for your advise.
Joseph
Assuming that interest rates are not set to rise substantially in the next few years, what other factors and risks may cause these preferred shares to drop in price and do you think that these are safe to hold for the yield for a 5 year+ hold in a TFSA. Is there any difference between the M & K series and which would be preferable to hold at this time.
Thank you for your advise.
Joseph
Q: For money that will be needed in 5 years I am considering investing in some of the new recently issued bank pref shares.
TD.PF.G ,RY.PR.Q, BNS.PR.E
Assuming the shares are all called in 2021 at $25 the current yields would come out to be approximately 4.5%. This would be equivalent to approximately 7.7% on an interest rate.(depending on income levels ) If the banks issued a 5 year GIC at 7.7% the lineup would be long.
With this in mind, is the only realistic risk based on the possibility of interest rates rising?
Also, any thoughts how much these would get hit if interest rates rose , say a full 1%.
Great service & many thanks.
Paul
TD.PF.G ,RY.PR.Q, BNS.PR.E
Assuming the shares are all called in 2021 at $25 the current yields would come out to be approximately 4.5%. This would be equivalent to approximately 7.7% on an interest rate.(depending on income levels ) If the banks issued a 5 year GIC at 7.7% the lineup would be long.
With this in mind, is the only realistic risk based on the possibility of interest rates rising?
Also, any thoughts how much these would get hit if interest rates rose , say a full 1%.
Great service & many thanks.
Paul
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.53)
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BMO Covered Call Canadian Banks ETF (ZWB $21.55)
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BMO Laddered Preferred Share Index ETF (ZPR $11.85)
Q: I own ZWB. When interest rates rise, I suspect that individual high quality rate reset preferreds will have a greater increase in price than ZWB. What do you think? If you agree, please provide the name of a few rate resets with the 5 year renewing base rate. Thanks.
Q: Good morning 5i, in reference to Judy's question which of the preferreds (A, B or C) would make the best investment for income and what weighting would you consider safe? Thank you
Q: My investment in ATP convertable debentures will be called in May. Would you invest the proceeds in either ATP DB.U or DB.D?
Thanks Guys
Thanks Guys
Q: With the take over of Capstone Infrastructure, can you tell me how come CSE.PR.A is still trading around the$13.00 mark.Also would like to know if the preferred,s of AIMIA CORP and ATLANTIC POWER would be a good investment or are they too risky.
Thank you for the information.
Thank you for the information.
Q: What is your opinion of the new TRP preferred series 13 for part of an income portfolio.
TRP.PR.J
Many Thanks
Paul
TRP.PR.J
Many Thanks
Paul
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.53)
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iShares Convertible Bond Index ETF (CVD $18.17)
Q: You had recently mentioned that you prefer CVD over CPD currently. Can you please explain the difference between the two and why you prefer CVD at this time.
Thank you
Thank you
Q: Hi Peter & Ryan, which of these two etf's would you prefer at this time? CPD or CVD. Thanks, Mario.
Q: I received e-mails offering me two Preferred Shares: Pembina Pipeline Corp. 5.75% Rate Reset Preferred Shares Class A, Series 13; and, Brookfield Office Properties Inc. 6.00% Minimum Rate Reset Class AAA Preference Shares, Series CC. They both have juicy yields and are tempting to purchase for income. The high yields are the upside, I would appreciate it if you could provide me with the downside to buying these shares in an income portfolio. Would it be best to simply buy CPD? Thank you.
Q: CPD has been slowly rising since hitting $11.13 on February 25 but it is still down 20% from its 52 week high of $15.33. What are your thoughts on this ETF?
Q: Would you consider this new convertible debenture investable in a well diversified bond portfolio?
Q: I have been holding this preferred stock for quite a while. It has been a great the yield, and I know what you think of the company, but would you give me an update of your risk assessment of holding on to this preferred.
What are the implications to Bombardier in cancelling the dividend, it being cumulative.
As always, thanks..
What are the implications to Bombardier in cancelling the dividend, it being cumulative.
As always, thanks..
Q: Please provide your opinion on purchasing preferred ETF's at the present time, for a one year hold, and which of the following would you prefer and why?.... CPD (Canadian Preferreds), XPF (North American Preferreds), HPR (Actively Managed Preferreds), ZPR (Laddered Preferreds). These funds would be held in a non-registered, fully taxable account. Thanks!
Q: What's up with the naming convention for preferred shares? For example, Artis REIT Series C Preferred Shares trade as AX.PR.U. I've noticed this with other prefs and find them hard to locate.
Q: RONA preferred shares didn't get the vote they needed for conversion and now today I got another offer for cash in either Cdn or US$ but need to let the broker know by April 8, 2016. Do you think Lowe will offer more than $20.00 and should reject this offer or accept it?
Dolores
Dolores
Q: Please comment on the following:
While it is exposed to oil in the west, Artis will still be able to cover dividends and, even if they cut common dividends would continue paying preferreds.
Second, reset preferred shares in general have been knocked down as rate increases failed to occur and exposure to oil in the west has pushed some down even further.
Third, Artis will likely recall AX.PR.A in September of 2017 when it comes up for reset, especially if rates are increasing at that point. I understand that Riocan recently recalled a reset. Currently trading around $17, AX.PR.A would be recalled at $25 if that happened. Worst case, assuming falling oil doesn't hurt Artis further and/or they don't recall AX.PR.A is that you continue to collect a pretty decent dividend when it is reset.
This is just speculation on my part. Please comment.
While it is exposed to oil in the west, Artis will still be able to cover dividends and, even if they cut common dividends would continue paying preferreds.
Second, reset preferred shares in general have been knocked down as rate increases failed to occur and exposure to oil in the west has pushed some down even further.
Third, Artis will likely recall AX.PR.A in September of 2017 when it comes up for reset, especially if rates are increasing at that point. I understand that Riocan recently recalled a reset. Currently trading around $17, AX.PR.A would be recalled at $25 if that happened. Worst case, assuming falling oil doesn't hurt Artis further and/or they don't recall AX.PR.A is that you continue to collect a pretty decent dividend when it is reset.
This is just speculation on my part. Please comment.
Q: Peter; Ok thanks - I guess this part was confusing to me - if they don't redeem them, then it's the 90 day TB?
Should CWB choose not to exercise its right to redeem the Series 7 Preferred Shares, holders of these shares will have the right to convert their shares into an equal number of non-cumulative floating rate First Preferred Shares Series 8 (Non-Viability Contingent Capital (NVCC)) (the "Series 8 Preferred Shares"), subject to certain conditions, on July 31, 2021, and on July 31 every five years thereafter. Holders of the Series 8 Preferred Shares will be entitled to receive quarterly floating dividends, as and when declared by the Board of Directors of CWB, equal to the 90-day Government of Canada Treasury Bill rate plus 547 basis points.
Should CWB choose not to exercise its right to redeem the Series 7 Preferred Shares, holders of these shares will have the right to convert their shares into an equal number of non-cumulative floating rate First Preferred Shares Series 8 (Non-Viability Contingent Capital (NVCC)) (the "Series 8 Preferred Shares"), subject to certain conditions, on July 31, 2021, and on July 31 every five years thereafter. Holders of the Series 8 Preferred Shares will be entitled to receive quarterly floating dividends, as and when declared by the Board of Directors of CWB, equal to the 90-day Government of Canada Treasury Bill rate plus 547 basis points.