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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: In regards to CPD or just pref's in general. They have sold off a lot over the past month. Fair to say they have priced rate increases in and are now forecasting a slowdown and rates going lower? Would a partial switch to a TLT-US make some sense here if that is the thesis?
Read Answer Asked by Michael on May 02, 2022
Q: It seems certain there will be several interest rate increases this year (and possibly more in 2023). That means fixed income will become more attractive. Please provide your outlook on this change and discuss how various fixed-income types (bonds, mortgages, mortgage-backed securities, consumer financing, etc.) will be affected and what opportunities for individual investors are likely to appear in the fixed-income sector as rates rise over the next 12-18 months.

Thank you,
IslandJohn


Read Answer Asked by John on January 24, 2022
Q: Hello, I am looking for an answer to a difficult question about evaluation of risk for fixed income assets.
I understand that for a long time, it was anticipated that the long decline of interest rates and correlated bond rally has ground down and the current prevailing question surrounding interest rates is how fast they may rise.
With this in mind, could you please offer thoughts on the relative risk of bonds? How much downside potential is there, and is it justifiable to buy their low volatility, even if it is believed to be a (apparently) horrible investment with no future potential, just for those two percents of yield?
Your thoughts are greatly appreciated.
Read Answer Asked by Peter on November 22, 2021
Q: I read your article about the correlation between stocks and bonds and it made me wonder whether this was a good or not so good time to purchase them? I read a little more in another article and it said that in the same historical instances, bonds have tended to do well after. Would you agree with this?
I only have room in my margin account so would CVD, CPD, and HAB be giving me interest as apposed to Dividends so there are tax implications?
Thanks!
Read Answer Asked by Pat on August 26, 2021
Q: As a follow up to my question on fixed income, would you suggest I hold both XBB and CBO or pick one and if so, which one please? Similarly, hold both SHY and TLT or choose one and which one?

Thanks.
Read Answer Asked by Gregory on March 25, 2021
Q: Suppose an investor believes that the US Treasury market is at the end of its multi decade rise and likely to collapse within the next 1-3 years. Is there a low cost way to short US Treasuries you could recommend? If so then what about at different maturities? What would be your opinion about this strategy and its risk?
Read Answer Asked by Steven on March 22, 2021
Q: As a follow-up to my question last week on interest rates up/down, please also advise which funds/ETFs perform best when interest rates move in either direction.

Thanks again.
Read Answer Asked by Arthur on March 08, 2021
Q: Is it time to start letting go of these long term bond ETF? Or do you see a role as part of a laddered portfolio? If so, what percentage of these long term bond holdings would you suggest at this point? Unless we have negative rates the only way is up? Not sure I believe that rates will be kept so low for much longer.
Thank-you.
Read Answer Asked by Debrah on February 09, 2021
Q: Rightly or wrongly, I believe a market downturn is coming with negative rates a possibility. I have raised cash by selling many of my equities. I'm not confident in the health of the corporate bond market but was wondering if you can suggest a government bond fund/ETF (US and/or Canadian government) or other government fixed income strategy that may benefit from negative rates?
Read Answer Asked by Neelesh on December 16, 2020
Q: Hi, US long terms bonds performed very well during the recent market decline. Did the Canadian bond etfs perform well during this down turn? Which ones did well? I would add to such bond etfs. Thanks.

Regards,

Shyam
Read Answer Asked by Shyam on May 29, 2020
Q: Hi,
I'm trying to create a well balanced bond fund for that portion of my portfolio and have come up with this: HFR-T, CBO-T, CLF-T, TLT, XBB-T, CVD-T, SHY, FLOT, IVOL, BNDX, VSG-T
I guess I should have something that will generate monthly income as well? If I am overdoing this, please let me know...it seems like a lot of holdings. Is there a better way? A mutual fund?
Thanks.
Read Answer Asked by Gregory on May 13, 2020
Q: Could you please suggest few a) good fixed income high yield ETFs b) least volatile ETFs with some income ?
Thanks
Read Answer Asked by Dineth on May 01, 2020
Q: What are your top 5 Fixed Income ETFs (Cdn or US / International exposure) to hold long term in a RRIF or RSP in the current environment?
Thank you in advance.
Read Answer Asked by EDWARD on April 27, 2020
Q: Since the world is engaged in massive bailouts and handouts, does taking a position in US treasuries become more appealing. I know very little about govt bonds other than they are supposed to be safe and they are uncorrelated to the stock market, but if the US govt (and everyone else) is going to buy huge amounts of their own treasuries, it seems this might be a place to make money, not just store it. Is this thinking flawed?
If i take a position in ztl, is this just a safety play, or can it continue to make big gains? Are there other long bond etfs that i should consider?
Thanks for all your help in demystifying the investing world
t
Read Answer Asked by treva on April 22, 2020
Q: Realizing that all the above listed securities differ, they all got battered like everything else. Your opinion would be appreciated as to slowly buying into these positions and your preferred ordering.
Thank you, as always!
Read Answer Asked by Sigrid on March 23, 2020
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