Investment Q&A

Q: Enbridge Inc. 4.40% 5.25 - Year Rate Reset Preferred Share

Short Description: Treasury Offering of Cumulative Redeemable Preferred Shares, Series 7
Price: $25.00 CDN per share.
This is a new issue just announced yesterday.
Preferred shares have not done well of late but given the stability of this company would these shares be a good investment at this time?

Q: your feeling on blx.db

Q: Convertible bond question(asked by richard)on Dec 2/13

A 'layered' strategy implies receiving the redemption proceeds in cash. However, almost all cnvt. prospectus (see sedar.com) for the last 20 years contain clauses allowing the issuer to pay the redemption proceeds and interest in shares. Not all cnvt issues fare as well as the excellent list presented, particularly resource issues, eg: PDL.DB is .42/$, STP.DB is .50/$.

Publish at your discretion.

Q: I would appreciate your view on convertible bonds (debentures)as an alternative to corporate bonds or preferred shares for income particularly in a rising equity environment and in a potentially rising interest rate environment. Is a laddered approach feasible? I have found only three ETFs devoted to convertible bonds, CVD and CXF in Canada and CWB in the US. The first two fall short of their benchmarks which surprised me as I thought ETFs were supposed to mimic their benchmarks. CWB on the other hand has done well lately. Are there half a dozen or so converts that you could recommend if one wanted to start a ladder? Thank you; I look forward to your reply.

PS: perhaps a listing in "View by Category" for preferred shares and convertible debentures would facilitate searches?