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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: My self-service broker has in its inventory Sherritt bonds, having 7-1/2 years to maturity on 11 Oct 2025. The (annualized) yield to maturity is 9.8% .
To redeem the bonds at full value on the maturity date, Sherritt does not have to do well : it just needs to survive without defaulting on its debt.
I am fully aware that these bonds are not suitable for the safe fixed-income part of my portfolio, but rather would be lumped in with my equity investments in terms of risk.
What is your opinion as to the probability that Sherritt will, at a minimum, "at least barely survive" so that they would be able to redeem the face value of the bonds in 2025?
Thanks!
Read Answer Asked by Gregory on May 16, 2018
Q: Hello 5i Team

Is there value in Hydro One as a long term dividend hold?
For the installment receipts is there value similar to AltaGas installment receipts. I understand the Hydro One installment receipts are debentures, but it is confusing to value them. Could you please provide the amount of the second installment.

Thanks for the great service.
Read Answer Asked by Stephen on May 15, 2018
Q: Do you see connection between this stock hitting new 52 day low two days in a row and election rhetoric by opposition parties to lower hydro bills by repurchasing shares sold by liberals or firing current CEO. Can Avista merger be stopped which I believe has already been approved by regulators. Do you still recommend Hydro One shares to income oriented investor.
Best regards,
Harold
Read Answer Asked by Harold on May 15, 2018
Q: Hello 5i,
In the interest of understanding fully what i am buying, could you tell me how floating rate bond funds manage to float? When i look at the informarion for FLOT, for instance, i notice that the maturity dates vary from one month to five years, if i remember correctly. An etf like xsb doesn't seem to be a lot different. Is it because Floating rates are heavily weighted to the very short term, even though they do as well go out to five years?
Thanks for all the great work
Read Answer Asked by joseph on May 14, 2018
Q: I believe Brookfield Asset reported earnings yesterday. From what I can see, they were blow out numbers, but stock only increased 2%. Thoughts and comments?
Read Answer Asked by Steve on May 14, 2018