Q: A portion of my overall portfolio is perpetual preferred shares (down 4.5%) and I am considering selling and replacing with rate-reset preferred shares. I would appreciate your comments on the two types of preferreds and your recommendation for 4 or 5 rate-resets. In addition to the BCE.PR, I currently hold BAM, GWO, MFC, and SLF preferreds.
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Hello;
I am wondering what your thoughts are on TA preferred shares. Most of them are well below par but offer a nice yield at these lower values. So, is there any chance they could return to par, rate re-set is in 2016 or this a value trap in light of company conditions of late?
Thanks for your opinion and great service!
Jerry
I am wondering what your thoughts are on TA preferred shares. Most of them are well below par but offer a nice yield at these lower values. So, is there any chance they could return to par, rate re-set is in 2016 or this a value trap in light of company conditions of late?
Thanks for your opinion and great service!
Jerry
Q: I was looking for fixed income alternatives back in 2012 for my RRSP account. I invested in a convertible debenture FTP.DB which I planned to hold to maturity, Dec. 31, 2016. I thought its coupon rate at 6.5% provided a good return relative to other fixed income investments. As you know the price of Fortress Paper's common shares and its convertible debentures have dropped considerably since then. Do you think I have legitimate concern on whether the company will be solvent in 2016 to buy back the debentures? Would it be better to cut my losses now?
Q: PWB is issuing a series of preferred shares. Can I please have your take on what your comfort level would be with these?
Q: I find preferred shares a very complex area (other than perhaps fixed date callable/retractable). Could there be some catches to them requiring a review of the prospectus.
For resets, I don't suppose that yield to maturity takes into account whether the reset provisions result in an equivalent security e.g a change in spread to Canada's relative to the spread on original issue date. Or can one depend on such a change not occurring.
For resets, I don't suppose that yield to maturity takes into account whether the reset provisions result in an equivalent security e.g a change in spread to Canada's relative to the spread on original issue date. Or can one depend on such a change not occurring.
Q: Aside from cash, money market and buying bonds and holding the bonds until maturity where do u suggest one puts cash/profits?
1) an ETF for 3 to 6 months
2) ETF for 6 to 12 months
3) ETF for 12 months and longer
4) Any other things u might recommend - preferred shares?
Thank you.
1) an ETF for 3 to 6 months
2) ETF for 6 to 12 months
3) ETF for 12 months and longer
4) Any other things u might recommend - preferred shares?
Thank you.
Q: In my portfolio I have 15% in preferreds, thats my fixed income, 8% of that is in Great West Life GWO-R, Fortis-J, Power Financial-S,all of which are straight perpetuals. The other 7% is in CPD,Claymore Preferred. I paid $25.00 for each of these Preferreds, so am down on each one, they pay a dividend of 4.7%.
With the news of interest rates about to rise, should I sell these? Thank you and cheers to Peter!
With the news of interest rates about to rise, should I sell these? Thank you and cheers to Peter!
Q: Convertible Debt: Boyd Group or other.
Am I right in saying that if a person is not trying to mitigate downside risk or looking for income, buying the equity should always carry a higher "expected value" return than convertible debt?
Am I right in saying that if a person is not trying to mitigate downside risk or looking for income, buying the equity should always carry a higher "expected value" return than convertible debt?
Q: Pembina Pipeline Corporation Series 7 Preferred Shares were just offered. Would these be a good, safe investment for solid income? Any other thoughts on them? Thanks!
Q: This may be an off the wall question, but would it be reasonable to regard CPP and OAS as part of the "bond" portion of a retiree's portfolio? Thank you for your continued stabilizing support.
Q: PPL.DB.F convertible debentures have jumped in value together with PPL common. Can you please advise how to judge whether to hold the debenture until just prior to redemption or maturity or sell now and replace with something else that has more forward opportunity. Thanks.
Q: I have been reluctant to buy preferred shares due to the anticipated rise in interest rates. However, rate reset preferreds may provide the interest rate protection I desire plus a reasonable return. Are there any rate resets on your radar?
Q: Good day Peter,
Some advice, please. I am 70 years old with an investment portfolio of 3 million, consisting of $300,000. In 6% bonds, $225,000 in annuities, a $40,000. Indexed pension and a diversified portfolio of stocks. In my portfolio I have $90,000. In the Prefs listed below. My question is, do I continue to hold them with the threat of rising interest rates or move to AD, EMA, BGI.un,or any other stock you might suggest. My objective is to preserve capital, obtain some growth, and get a good dividend income stream.
BAM.PR.R -5.15%,
BPO.PR.R- 5.97,
MFC.PR.C - 4.92,
PWF.PR.P- 4.70,
PIC.PR.A - 5.49.
Thank you, Peter.
Don
Some advice, please. I am 70 years old with an investment portfolio of 3 million, consisting of $300,000. In 6% bonds, $225,000 in annuities, a $40,000. Indexed pension and a diversified portfolio of stocks. In my portfolio I have $90,000. In the Prefs listed below. My question is, do I continue to hold them with the threat of rising interest rates or move to AD, EMA, BGI.un,or any other stock you might suggest. My objective is to preserve capital, obtain some growth, and get a good dividend income stream.
BAM.PR.R -5.15%,
BPO.PR.R- 5.97,
MFC.PR.C - 4.92,
PWF.PR.P- 4.70,
PIC.PR.A - 5.49.
Thank you, Peter.
Don
Q: I currently hold the 5.75% convertible debentures from Healthlease Properties and I am confused as to how today’s takeover announcement affects the debentures. My understanding is that holders can convert the debentures into shares at $14.00 (which is almost in-line with the takeover price) or they may be purchased back by Health Care at 101%. Both options offer only a very tiny premium yet the debentures are trading higher on the news (right now at $105). I am inclined to sell now for the current premium unless there is something I don’t understand. Does selling now to take advantage of the uptick on this news make sense?
Q: Would a portfolio of high quality Canadian preferred shares be suitable for a senior? The senior is 80, does not need the income, does not expect to need the funds within 5 years, but is looking for higher yield (vs GICs), with limited downside risk (in case any funds are required). Possible companies: Loblaw, Fortis, TransCanada, etc.
One concern is interest rates: if rates increase (e.g. over 5-10 years), is there significant risk that the stock price will decrease (i.e. similar to a bond)?
Thank you.
One concern is interest rates: if rates increase (e.g. over 5-10 years), is there significant risk that the stock price will decrease (i.e. similar to a bond)?
Thank you.
Q: Concerning the short attack on EIF, it would appear that some of the comments by Veritas and repeated in the G&M article were misleading, if not bordering on dishonest. You mentioned the fact that everyone is entitled to their opinion, but if an ordinary joe tried such a scam, they would likely be fined by the regulators. So how do these people get away with it? My investor question is; do you think the secured debentures, more specifically the EIF.DB.D debs, are an ok buy. They are "on sale".
Q: Re: BBD.PR.C Bombardier Preferred
Would you consider BBD.PR.C fairly safe as an Income holding. Dividend yield is approx 7.1%. If you're not okay with this one could you please provide some alternates?
Thank you.
Would you consider BBD.PR.C fairly safe as an Income holding. Dividend yield is approx 7.1%. If you're not okay with this one could you please provide some alternates?
Thank you.
Q: Good Morning
What is your view of the new Transalta floating rate pref. for a longer term income holding?
Thanks for your input.
What is your view of the new Transalta floating rate pref. for a longer term income holding?
Thanks for your input.
Q: I bought Capital Power CPX.PR.A preferred shares. Should I have bought instead CPX Capital Power, not the preferred. They keep going up and they increased dividing to 7.9%. The preferred just keep going down. I thought buying the preferred would be safer but there is no gains with them, only losses. Thanks.
Q: Hello Team:
Being close to 70 and having all our portfolio in stocks, should I be considering moving a chunk of money into bonds? Some I am considering are Templeton Emerging Markets (TEI),Pimco Strategic Income (RCS) and Phillips Hager&North (PH&N). I have confidence long term in the market, but am somewhat uneasy of being caught in old age in large downturn. That said, I am willing to accept some risk for better return. I realize this is a big question, but any help you can provide me to structure some sort of plan would be most appreciated.
All the best
brian
Being close to 70 and having all our portfolio in stocks, should I be considering moving a chunk of money into bonds? Some I am considering are Templeton Emerging Markets (TEI),Pimco Strategic Income (RCS) and Phillips Hager&North (PH&N). I have confidence long term in the market, but am somewhat uneasy of being caught in old age in large downturn. That said, I am willing to accept some risk for better return. I realize this is a big question, but any help you can provide me to structure some sort of plan would be most appreciated.
All the best
brian