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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: Hi Peter and Co.

May I have your opinion on this bond...TRANSALTA MTN 6.4% 18NV19? The bond is presently trading at $110.36*, and I do have a nice capital gain. I have no problem holding the bond (in my RSP) until maturity, but am concerned about the safety of the bond considering the price decline in TA's stock price. Your thoughts are appreciated.

Merry Christmas to the staff at 5iResearch.

Arnie
Read Answer Asked by Arnold on December 22, 2014
Q: TA.pr.D
I read your recent comment on TA common shares, but does the same opinion apply to their reset prefs, this one trading at a very attractive price and yield. More broadly, so many rate reset prefs are off, in particular the past 2 weeks. While part of an income portfolio (the lower current costs seemingly protecting against rate increases), are they possibly still a bit of a value trap, even at these reduced prices? Thank-you as always...
Read Answer Asked by Warren on December 13, 2013
Q: I own Tranalta preferred share series F and although I understand why preferred shares in general have declined recently because of qantative easing comments recently, I am at a loss to understand why these share have dropped so much. As I understand it the balance sheet is fairly solid and this series will be redeemed or the rate is due to be reset in about 2 years. If Transalta does have cash flow problems it could reduced the common dividend and at least temporarily solve the problem. Can you explain this?
Read Answer Asked by Jerry on July 26, 2013