TransCanada has a bond with a maturity in July 17, 2025. The bond has a yield to current ask of 3.48% (coupon is 3.30%). Any thoughts or concerns about purchasing this bond with the intent to hold to maturity?
For information, my current portfolios are 85% equity and 15% debt.
Q: I own a bond issued by Aimia, (Corp. AIMC 6.95 01/26//17). The company seems to be having its troubles lately. Is the company secure and do you think the bond is safe and will mature at par on its maturity date? If you can help I would greatly appreciate the support.
Q: Do these have a place in this market for a retiree seeking for moderate income and security and would the tlt have better potential . Thanks have a good day. Tom
Q: There is an investment(!) strategy whereby the dividend payout dates are used as the basis of buying and selling equities for multiple payouts during a year. Intellectually this sounds interesting. Is a plan such as this practical, feasible, legal, moral etc. On the surface this might generate reasonable returns if mid tier dividend payers are followed closely , with all the usual selection criteria employed. Are there serious tax implications? Your usual pragmatic overview please.
Q: Re answer to Ron's question on bond investment yesterday, it was mentioned "use CBO for better diversification in the corporate sector. There are 'target date' ETFs that provide a diversified pool of bonds maturing in a specific year. They are not perfect but do help to solve this problem a bit."
Can you please expand on the reasons why the target date ETFs are not perfect and the pros and cons between owning CBO and build a ladder using multiple target date ETF? Do they have similar YTM?
With target date ETFs, isn't the initial investment guaranteed plus YTM at maturity; whereas with CBO, after say 5 years, there is no guarantee one will get back the initial investment pending on the bond market and interest rate trend? Thanks for explaining in more details.
Q: In my husbands Rrsp account we have been generally following the income portfolio with regards to equities. Since he doesn't have a pension, it is important that it generates a steady income while preserving capital although he would not be touching capital for a few years. We recently added Bns when the dividend went to 5.5%. Given Boston pizzas increased dividend announcement and its drop in price today, would you purchase it today for income knowing that the stock price will probably increase in the further when the markets stabilize or are there other stocks that are more compelling.
Thank you.
Maggie
Q: Hi,team thanks for all your great insight. I would like your views on Linamar and would you expect this company to benefit more than Magna from the low dollar.
Q: I own Royal Bank shares--is there another of the big 5 banks that would compliment this holding and is it a buy now? I would like to just hold two banks and add as they get cheap.
Q: I have been looking at this for quite a while: keeps going down when one would think the opposite? Is there a concern about: oil companies going under & thus defaulting, increasing interest rates in the US - minimal as they may be? Usually bonds and equities act contrary to each. In any case, I was going to buy 3000 shares for my RIF - currently have no bonds and this would be a small position.
Q: I had asked a question earlier regarding Bonds vs. Bond ETF's. I am still unclear on how to assure the return of my capital with an ETF or any Bond fund. I understand the income side but if the ETF value drops there is no capital return like there is with an actual Bond. - If I have $100k to invest in Bonds is my capital not much safer with 5 laddered high quality bonds than with an ETF. Is there any way to purchase a bundle of bonds and allow them to mature? or is there a similar fixed income investment that preserves the capital value - thanks for your help.
Q: As this seems to be a pretty popular topic today. A potentially profitable trade on this security is selling the $10 July puts for .55 cents. This will give the seller the right to buy the stock at $10 and have .55 cents in their pocket already for a potentially effective purchase price on AQN of $9.45.
Think that might be of interest, who wouldn't want AQN at $9.45 if the stock closes below $10 on expiry date?