Investment Q&A

Q: I own a few rate reset preferreds that I should have sold a long time ago but didn't because I thought all the downside was already priced in and they are paying high yields. Hah! Was I wrong about the downside. Anyhow, I own BRF.PR.A , ENB.PR.N , and PPL.PR.E. These are now priced at 14.25, 13.91, and 16.85 and yield 6.3%, 7.5%, and 6.4% at the current prices. Their face values rose quite a bit in the market upswing on Friday so they seem to be affected by the overall market sentiment. What would be your advice on what to do with these now? Also, I own some CPD which is yielding 6.4% at 11.60. These were all supposed to be part of the fixed income part of my portfolio but have done worse that most of my equities.
Thanks!

Q: Does the dividend on this pref. look secure, for a hold, at ~11%?

Q: When CSE is taken out, what will happen to CSE.PR.A, will it be redeemed at PAR?
Thanks
Cec

Q: Husky has suspended the payment of dividends on their common shares.
What is the likelihood of suspending the payment of dividends on their preferred shares like hse.pr.e ?
Under what conditions a company can suspend the payment of dividends on preferred shares?
Would you advise selling hse.pr.e at this stage?
Thank you.

Q: I've noticed with the recent market mayhem the Yield to Maturity on a number of convertible debentures has been rising and they are starting to look quite attractive. Am I right in thinking dividends would be cut before any interest payments are missed? Specifically, what do you think of EIF.DB.G? How safe is it?

Q: My earlier question on ala.pr.u was not answered. Can you please advise?
I am resending the question:

ala.pr.u is a rate reset preferred share in US denomination. The rate will reset in 2017 at 3.58% plus the 5 year US Government bond.
While the steep decline of the Canadian Preferred rate reset shares is understandable because of declining Canadian interest rates, the decline of ala.pr.u from $25 a year ago to $17.30 today is puzzling.
Can you please provide some insight as to why this US dollar preferred share has lost 40% of its value if the reset rate will depend on the 5 year US Government bond which is 1.46% today vs .57% for the respective Canadian rate??
Thanks

Q: Good Afternoon
Would you consider the new PPL minimum rate reset selling at $1.00+ below issue a good TSA income investment, or are there previous utility issues selling at greater discounts without as favourable a reset more appropriate?
Thanks to all

Q: This interest-bearing preferred has fallen by nearly 50% in the past year and is now yielding 16%. How risky is this preferred, given that, if necessary, the substantial dividend on the corresponding common shares (M) could be eliminated if cash flow becomes too low?

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

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

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

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

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

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

Q: Hello
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.