Q: Supposing the BOC drops the overnight rate on Wednesday by 25 basis points. ZPR would go South. CBO and VSC go North. XBB goes North. Am I correct?
Thanks
Thanks
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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: current price for this preferred stock is 9.75 with 5% dividend if fund winds down; the original issue price of 10.00 per unit will be paid to the share holder. is this correct or am i missing something. i have shares in dgs.pr , ftn.pr & dfn.pr how would you rate these funds as to saftey of dividend &repayment of orginal issue price
Q: You last commented on these prefs in Apr. Since then they have declined a lot further and now appear attractive for at least yield. Are you still comfortable with the credit rating of the company in today's environment?
Thanks
Thanks
Q: I see that DFN is dropping like the rest of the market. Rob Carrick from The Globe and Mail is recommending preferreds in the form of CPD. Are preferreds in any form a good safe haven right now?
Vern
Vern
Q: I am finally looking at converting some of my RIF to bonds in order to get a stable income to add to pension. The funds will be divided equally between CBO,XBB,XHY. I have not invested in bond funds before and would really like to better understand what affects the price movement of these three particular funds. I have done a browse on Moneysaver past issues but can't find anything that really gives me the info I'm looking for. Could you give a quick explanation or maybe suggest some alternative resource ?
Many thanks
Many thanks
Q: Hi Peter & Co.,
I am considering taking a position in Sunlife perpetual preferred shares (series A,B,C or D). Current yield is about 5.8% vs. 4% on the common shares. It seems to me that gov't bond yields in Canada will be low for quite some time to come, and may even head lower should Mr. Poloz reduce the prime rate this year. These shares are already trading 10% or so below their call price, which should help if the company eventually calls them. What do you think of this issue as a long-term hold for income? Also, do you know what the rating is on these shares?
Thanks,
Brian
I am considering taking a position in Sunlife perpetual preferred shares (series A,B,C or D). Current yield is about 5.8% vs. 4% on the common shares. It seems to me that gov't bond yields in Canada will be low for quite some time to come, and may even head lower should Mr. Poloz reduce the prime rate this year. These shares are already trading 10% or so below their call price, which should help if the company eventually calls them. What do you think of this issue as a long-term hold for income? Also, do you know what the rating is on these shares?
Thanks,
Brian
Q: I HAVE SOLD SOME OF MY PREFERRED AND HAVE 3 LEFT: IAG.PR.G, PWF.PR.S AND BCE.PR.K. DO YOU THINK THEY HAVE ANY UP VALUE OR SHOULD I GET RID OF THEM AND PICK UP THE NEW GENERATION PREFERRED SHARES WHICH HAS A RESET BASE. (EG ALA.PR.I) OR CONTINUE HOLDING THESE INVESTMENTS.
Q: I have a small position in this pref in a registered account. I've held it for almost a year and am down on it. I was wondering if I shouldn't add to it at this time given I have sufficient cash in that account?
Ron
Ron
Q: Hello
I'm interested in knowing your thoughts on good investment options for asset preservation but still with some income growth potential.
I'm interested in knowing your thoughts on good investment options for asset preservation but still with some income growth potential.
Q: Are there pros/cons when buying callable vs non-callable bonds where the effective maturity is the same?
Q: hi, what do think about CPD? is now a good time to buy and hold...
Q: Could I please have an update on XHB, Blackrock's Hybrid Corp Bond Index. I asked about this ETF last August and it has since fallen in value quite substantially. On the other hand, the laddered Corp Bond Index from Blackrock, CBO, has held up rather well over the same time frame. Would CBO be preferable over XHB? Or should bond funds be avoided at this volatile time? I am currently sitting on 30% GIC's and 70% cash - no equities whatsoever. Thanks for your opinion.
Q: Hello
earlier question about the enb pref.......ticker is PF.G
The dividend is initially fixed until September 1, 2020. On September 1, 2020 and on September 1st every five years thereafter the dividend will be re-set and fixed at a rate that equals the sum of the Government Of Canada Yield (GCAN5YR) plus 2.68%.
earlier question about the enb pref.......ticker is PF.G
The dividend is initially fixed until September 1, 2020. On September 1, 2020 and on September 1st every five years thereafter the dividend will be re-set and fixed at a rate that equals the sum of the Government Of Canada Yield (GCAN5YR) plus 2.68%.
Q: Good Morning Your opinion plse on what to do
A. Sell before it gets worse
B. Wait for a pick up then sell
C. Be patient wait for interest rates to rise over the next 4 yrs and maybe break even
I own 600 shares of each purchased at issue at 25$
A. Sell before it gets worse
B. Wait for a pick up then sell
C. Be patient wait for interest rates to rise over the next 4 yrs and maybe break even
I own 600 shares of each purchased at issue at 25$
Q: I am intrigued by the yield offered on these two Pfd's ...around 7 % with resets 4 & 5 years out at approx 4.8 % (C) & 5.4 % (G) plus 5 yr Cda Rate...Can you give me your opinion, please and thank you , as to the credit worthiness of these two pfd's ...also if you know there credit rating...and whether you would feel comfortable buying them at these levels with the view of holding them longer term...Many thanks
Q: I am interested in purchasing some bonds for fairly high yield with an approx. 3 year term. Your recommendations would be appreciated. and possibly some advise on the do's and dont's of holding them
Q: Is it advantageous to convert shares to series 6 by the end of January. What happens to the dividend if I just hold the stock long term.
Q: Further to my question regarding conversion of series 4 preferred shares, here is a recent comment from James Hymas, who is a pref shares guru: http://prefblog.com/?p=31665
"...If you wanted a true indication of the value of Dundee’s proposal to the Series 4 shareholders, then Dundee could have extended the term for those shareholders, that might be delusional enough to accept the deal. However, on that basis, I’m sure that it would be a small minority.
I agree. The proposal runs contrary to the usual method of term-extension for retractible preferred shares in Canada (which happens frequently, if not exclusively, with Split Share preferreds), in which there is almost always a “Special Retraction Right” allowing unhappy shareholders to exit their investment on the original terms.
That, I should hope, will be the objective of any beneficial shareholders who are in discussions with the company."
"...If you wanted a true indication of the value of Dundee’s proposal to the Series 4 shareholders, then Dundee could have extended the term for those shareholders, that might be delusional enough to accept the deal. However, on that basis, I’m sure that it would be a small minority.
I agree. The proposal runs contrary to the usual method of term-extension for retractible preferred shares in Canada (which happens frequently, if not exclusively, with Split Share preferreds), in which there is almost always a “Special Retraction Right” allowing unhappy shareholders to exit their investment on the original terms.
That, I should hope, will be the objective of any beneficial shareholders who are in discussions with the company."
Q: Please let us know your thoughts on "Principal At Risk" notes, specifically the CIBC Cdn. Banks Auto Callable notes recently offered.
The offering documents make them look very attractive with the potential for high single digit returns appearing to be almost a certainty.
Also any general comments on PPNs and "Principal at Risk" notes would be most appreciated.
The offering documents make them look very attractive with the potential for high single digit returns appearing to be almost a certainty.
Also any general comments on PPNs and "Principal at Risk" notes would be most appreciated.
Q: In a portfolio it is generally recommended that you avoid a weighting of more than 5% per equity. My question is as follows. Assuming your total portfolio is 1M. The split 60% equities and 40% fixed income. On the equity side this would imply 20 stocks at an average value of 30K per stock to meet the 5% guideline. On the fixed income side does the same rule apply or can you say 2 ETF's at 200K each. Say 200K of CBO and 200K of ZSU as an example . It brings the weighting to 20% each. Notwithstanding one could probably go to a product that gives you the entire bond spectrum and put 400K in one ETF. What is your opinion and recommendation.
Always appreciate your incite and all the best in the new year.
Always appreciate your incite and all the best in the new year.