Q: I FIND ALL OF THESE PREFFEREDS TO HAVE GREAT DIVIDENDS AT CURRENT PRICES,ALL WERE ISSUED AT $25.00.AT SOME POINT IN THE FUTURE SHOULD THERE VALUE NOT RETURN TO OR NEAR ISSUE PRICE ?OR IS THERE SOMETHING I AM MISSING
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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: May I have you opinion on preferred shares? Specifically I would like you opinion of
Royal Bank of Canada 3.6% Non-Cum. 5-Year Rate Reset First Pref., Series BD
Call/Reset Date: 24-May-2020
Call Price: $25.00
Terms of Reset: 5yr GoC Yld + 2.74%
Close Price (13-Oct-15): $18.46
Since this is considered to be Non-Viability Contingent Capital, I believe there may be a good chance that this will be called. At the current price, would it be worth buying for the fixed income.
Thank-you
Royal Bank of Canada 3.6% Non-Cum. 5-Year Rate Reset First Pref., Series BD
Call/Reset Date: 24-May-2020
Call Price: $25.00
Terms of Reset: 5yr GoC Yld + 2.74%
Close Price (13-Oct-15): $18.46
Since this is considered to be Non-Viability Contingent Capital, I believe there may be a good chance that this will be called. At the current price, would it be worth buying for the fixed income.
Thank-you
Q: This pref looks to offer a good yield (~6.4%) and a good capital gain (at current price) in 2018. Am I missing something? Thanks.
Q: Can you explain what is "wrong" with this issue (very low and falling price) and why it is, or is not, a reasonable buy for income. I know it will reset at around 4 1/2% at present interest rate scenarios in 2019, but looks pretty good overall with a current yield of ~9.7%. Thanks.
Q: Hi Guys,
I have a large loss with a Fairfax Financial preferred (FFH.PR.I).
I was thinking of selling it and then purchasing FFH.PR.G. I would be in almost the same position as if I kept the original preferred but I would have a large tax loss to use. I would lose 29 basis points on the new rate and the reset would be a couple of months earlier but I would gain on the selling of FFH.PR.I ($15 bid) and purchase of FFH.PR.G ($13.70 ask).
Your comments would be most appreciated on this move.
Regards
John
I have a large loss with a Fairfax Financial preferred (FFH.PR.I).
I was thinking of selling it and then purchasing FFH.PR.G. I would be in almost the same position as if I kept the original preferred but I would have a large tax loss to use. I would lose 29 basis points on the new rate and the reset would be a couple of months earlier but I would gain on the selling of FFH.PR.I ($15 bid) and purchase of FFH.PR.G ($13.70 ask).
Your comments would be most appreciated on this move.
Regards
John
Q: I am starting a new position in either AX.UN or AX.PR.G. It would seem the distribution is safer with the preferred, but there's more upside in the actual unit price of AX.UN. Is this accurate? Of the two, which one would you pick?
Q: Investing in preferred shares is a conundrum at present.Do you have any suggestions on investing in these products or should they
be avoided for other income products which offer less risk of capital loss? Are pref share ETFs worth the effort? Joe
be avoided for other income products which offer less risk of capital loss? Are pref share ETFs worth the effort? Joe
Q: I was wondering if you could provide some insight on Westcoast Energy as a preferred share for income. I am looking to move away from some of my REITs and invest in something a little saver.
Q: I have just over 1% of my portfolio in a total of 3 pref. issues and would like to get up to 5% to take advantage of rate reset prices. Considering to add to TA.PR.H or buy ENB.pf.G or EMA.pr.F. What issue would you prefer or if you have another idea that would be helpful.
Q: Hi- this has been a horrible story for some time, but I noticed they did have improved results this summer . What are your thoughts on the stock at these levels and the risk/reward in buying common or the 7% conv. thanks
Q: Good Morning,
I own debentures of CUS (CV) and S. They are as follows:
CANEXUS CORPORATION SER VI CONV UNSEC SUBORD DEBS 12/31/21 6.5000
SHERRITT INTERNATIONAL CORP SENIOR UNSECURED NOTES 11/15/18 8.0000
SHERRITT INTERNATIONAL CORP SR DEB 09/24/20 7.5000
The CUS is selling around $70 and the S's are around $60. I purchased all 3 of them at issue, so am down quite significantly.
I am concerned that they will still be liquid at maturity to pay par for the bonds.
Could you determine after looking at the balance sheets if you think they should be sold right away or held till maturity?
If you owned them in your own account, what actions would you take?
Thanks
I own debentures of CUS (CV) and S. They are as follows:
CANEXUS CORPORATION SER VI CONV UNSEC SUBORD DEBS 12/31/21 6.5000
SHERRITT INTERNATIONAL CORP SENIOR UNSECURED NOTES 11/15/18 8.0000
SHERRITT INTERNATIONAL CORP SR DEB 09/24/20 7.5000
The CUS is selling around $70 and the S's are around $60. I purchased all 3 of them at issue, so am down quite significantly.
I am concerned that they will still be liquid at maturity to pay par for the bonds.
Could you determine after looking at the balance sheets if you think they should be sold right away or held till maturity?
If you owned them in your own account, what actions would you take?
Thanks
Q: Hello,
I am considering investing $5K in Guestlogix convertible bonds. They are trading at approximately 720 (per 1,000 bond). Can you let me if there is a good chance they will at least pay back at 505 or more? I know this is higher risk investment. To help you understand my risk tolerance ---I could stomach losing $2.5K but losing the whole $5K would upset me.
I am considering investing $5K in Guestlogix convertible bonds. They are trading at approximately 720 (per 1,000 bond). Can you let me if there is a good chance they will at least pay back at 505 or more? I know this is higher risk investment. To help you understand my risk tolerance ---I could stomach losing $2.5K but losing the whole $5K would upset me.
Q: hi; at 5 year maturity I take a floating rate 3 month T-bill now would be under .5% plus 2.5%,if the 2.5% on the $25 original price. if this is correct buying today would yield over 3% + floating rate in 4 years is this correct. thanks brian
Q: I am nervous about the markets between now and the end of the year because of the shorts from hedge funds and tax loss selling. Not to mention the possibility of a drastic change in our Federal Government. I am also shying away from bonds because of the threat of rising rates. I am largely in cash but am wondering if HPR would be considered a diversification from equities? Jeff
Q: hi peter
this new issue perpetual preferred is coming out at 5.25% this month... do you think this will be a good preferred share, many have been beaten up lately as their rates reset, do you think this will be different as the rate is fixed? the yield and safety seems enticing... thanks
this new issue perpetual preferred is coming out at 5.25% this month... do you think this will be a good preferred share, many have been beaten up lately as their rates reset, do you think this will be different as the rate is fixed? the yield and safety seems enticing... thanks
Q: Can I get your thoughts on PPL.PR.A? Is this a good save investment now that preferred shares have dropped back in price?
Q: Hi Peter and team,
We are considering selling common shares of Enbridge and purchasing preferred shares of Enbridge. We are up 34% in the common shares. The preferred market seems hated by everyone. The dividend yield is 5.91% and the dividend rate is 1.1% . We think the reset rate is June 2020.
What do you think of this strategy ? Thanks for your valued advise in the past and have a good weekend.
We are considering selling common shares of Enbridge and purchasing preferred shares of Enbridge. We are up 34% in the common shares. The preferred market seems hated by everyone. The dividend yield is 5.91% and the dividend rate is 1.1% . We think the reset rate is June 2020.
What do you think of this strategy ? Thanks for your valued advise in the past and have a good weekend.
Q: hi experts; onr.db.b can be bought for 88% onr.db.c for 101% the conversion price is $1 more for b .and 2 years less to convert. is this why the different pricing. thanks brian
Q: I originally bought these preferred shares for income. I knew that there was a risk if interest rates moved up, but I never envisioned the volatility that this stock would have this past year. If I am still investing for income, do you see the current stock price and high yield as an opportunity to buy more shares to improve my yield in my portfolio?
Q: What do you think of the Emera convertible debt issue
Thank you for your perspective
Thank you for your perspective