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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: I wonder if any of the big six own any US or CAN MBS or CMBS ? Thanks a lot .
Read Answer Asked by Lai Kuen on March 17, 2023
Q: I notice that with it's new FDIC unlimited guarantee SVB is marketing itself as the safest bank for depositors. With an unlimited guarantee, it is equivalent to holding reserves at the central bank. How does the competition respond if their guarantee is limited to $250k, or as is the case in Canada, $100k? How will banking change now that depositors know that they can be made safe/whole by the stroke of a regulators pen? Are we looking at a fundamental change to banking? How should investors position for this?
Your thoughts are appreciated.
Mike
Read Answer Asked by michael on March 17, 2023
Q: With bank failures in the forefront these days would you still consider HISA ETF's safe in this environment? Will the issues in the banking sector affect the NAV prices of these ETF's?
Read Answer Asked by Kyle on March 17, 2023
Q: Earlier I asked if a WSJ article stating "Canada never experienced a bank failure" is true. You replied.

"Not 100% true. The last major bank failure though was 100 years ago, in 1923. In 1985 two very tiny banks failed. In the 1991/92 real estate recession several trust companies failed, but these are not technically banks. "
Thanks for the reply.

Today a column in the Globe & Mail stated "CDIC has handled 43 bank failures since it's creation in 1967."

Just wondering if you could comment if they got that wrong.
Thanks.
Read Answer Asked by Reg on March 17, 2023
Q: Hi 5i - with homeowners attempting to renew mortgages at much higher rates in the next year or two (e.g. going from a 2% fixed rate to 6.5% fixed rate - possible foreclosures, etc), how much risk do you see regarding a housing crash and the resulting risk with Canadian banks? Thanks, Neil
Read Answer Asked by Neil on March 17, 2023
Q: I have bought stock in these Canadian banks, TD, Royal and BMO. How badly can these Canadian banks be hurt by their purchases of US assets? I was going to layer into these positions, would it be prudent to hold off?

Thanks
Brian
Read Answer Asked by Brian on March 17, 2023
Q: hi. do you have any current recommendations for any U.S. banks/financial institutions?
Read Answer Asked by chris on March 16, 2023
Q: With all the trauma in the financial sector, would you add to existing positions in Canadian bank stocks? Those dividends are starting to look real good.
Thanks Ron
Read Answer Asked by Ronald on March 15, 2023
Q: Does the current panic in the financial sector make FSZ more attractive or less? Should we treat its recent 13% drop as an opportunity, or should we worry that spooked investors will withdraw assets?

Sometimes companies get taken private when their share price is depressed; given such a move, would shareholders likely be the losers? Not so long ago (at $1/share higher), you characterized FSZ as "fine for income"; do you still think so?
Read Answer Asked by John on March 15, 2023
Q: A guest on BNN commented that BN.ca requires low interest rates to do well and didn't recommend holding the stock.
The stock hasn't done well since the BN/ Bam spin out. What is 5i's opinion. Do you think there is further down side, or languish at the current price or price appreciation.
There was a common assumption that with the stock spin out that it would unlock value. Instead tanked. Buy sell or hold.

Thanks for your expertise.
Brian
Read Answer Asked by Brian on March 15, 2023
Q: What happens to stock prices of mortgage companies when interest rates go down / up?
Read Answer Asked by Ron on March 15, 2023
Q: In a prior question you mentioned that Goeasy's "funding may slow down or cost more if investors get nervous in general, but it can't really experience a 'run' on current funding like a small bank can". I am trying to understand why Goeasy can't experience a 'run'. What is different with this company? You had also mentioned that it has a different funding base. Thank You.
Read Answer Asked by Walter on March 15, 2023
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