Investment Q&A

• SPDR Blackstone Senior Loan ETF (SRLN)
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Q: I just came across this quote within an Economist article:

“If you can earn 12%, maybe 13%, on a really good day in senior secured bank debt, what else do you want to do in life?” Steve Schwarzman, boss of Blackstone, a private-investment firm, recently asked.

Are there any bank bonds that you could suggest that would fit in this category?

Upvote 5

Read Answer Asked by Andrew on November 21, 2023

• iShares Core Canadian Universe Bond Index ETF (XBB)
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Q: I want to take advantage of capital gains in bonds that I expect to occur as rates decline but I am unsure whether I will get that benefit with an ETF like XBB as much as with individual bonds. Can you tell me how that works with the etf? I assume as they buy new bonds at to replace their maturing ones, that will take away the capital gains advantage as they buy them at par in the higher rate market.

Upvote 5

Read Answer Asked by Maria on November 20, 2023

• Global X Cash Maximizer Corporate Class ETF (HSAV)
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Q: Hi,
I see HSAV managers have suspended it's subscriptions and recommends not buying shares. Here's a quote from their website.
"... investors should note that during a period of suspended subscriptions, the Manager expects shares of HSAV to trade at a premium to its NAV per share.
Due to this expected premium, Horizons ETFs is strongly discouraging purchases of shares of HSAV during this suspension of subscriptions."
Can you explain why they're making this recommendation, the risks in buying shares now and do you still recommend buying HSAV shares to park cash in a non-registered account?
Thanks.

Upvote 4

Read Answer Asked by Camille on November 17, 2023

• Horizons Active High Yield Bond ETF (HYI)
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• iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Q: Can you help further clarify your answer to Ian's question on high yield bonds? You mentioned you prefer an active strategy, wouldn't that translate to holding HYI in the Income Portfolio instead of the current passive XHY? Then again passive XHY has outperformed over 1,3, 5 years and since inception.

Upvote 4

Read Answer Asked by Craig on November 17, 2023

• Constellation Software Inc. Unsecured Subordinated Floating Rate Debentures Series 1 (CSU.DB)
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Q: Hello 5i team,

I recently subscribed and bought a significant qty of CSU debentures @ the strike price of 133.
With the Canadian economy perhaps going into a recession? and rate cuts, how would you project the price to behave over one year? The percentage drop in price is more than the yield. Can one expect a total return of 8% for the next year? Would you suggest a sell and deploy in stocks?
Appreciate your analysis on the subject.
Regards
Rajiv

Upvote 5

Read Answer Asked by Rajiv on November 16, 2023

• iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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Q: I am thinking of buying a few short term, bonds 1 to 2 years maturity, that are presently discounted with a good credit rating
My thoughts are that with the capital appreciation of the bonds when they mature in 1 to 2 years plus the dividend I can achieve 10 to 12% return
What do you think of this ?
Can you make any suggestions as to three
possible bonds that will fulfil this criteria?
Thank you

Upvote 3

Read Answer Asked by Indra on November 15, 2023

Q: Annuities? To be or not to be? As a retiree I'm pondering whether to buy an annuity at a time when the payouts are at a recent hight. I'm not sure I see any advantage over buying say ENB. The company will likely be still around in twenty years with just as much assurance as an annuity provider. I'll get a dandy, tax-advantaged dividend ( not "guaranteed", I know) and still have my capital. can you comment on annuities and whether they make sense or not? thanks. al

Upvote 33

Read Answer Asked by alex on November 15, 2023

• iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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• iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Q: Hello
I hold these two bond funds which are down. Do you think they will rebound if interest rates start to drop?
I certainly could be putting the cash to better use.
Thanks
Jeff

Upvote 5

Read Answer Asked by JEFF on November 14, 2023

• BMO Aggregate Bond Index ETF (ZAG)
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• iShares Core Canadian Long Term Bond Index ETF (XLB)
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• Vanguard Canadian Aggregate Bond Index ETF (VAB)
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• Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (VBU)
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• iShares Core U.S. Aggregate Bond ETF (AGG)
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• iShares 20+ Year Treasury Bond ETF (TLT)
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Q: Hi. Which bond ETFs do you currently recommend? US or Canadian. Thank you.

Upvote 12

Read Answer Asked by Zohreh on November 13, 2023

• Manulife Strategic Income Fund Advisor Ser (MMF559)
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Q: Recently added to my position in Manulife Strategic Income - do you think my timing was good or bad. What is your opinion on this fund?

Thanks

Upvote 1

Read Answer Asked by Reg on November 13, 2023

• BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY)
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Q: In light of the current interest rate environment and the possibility of a US recession in the coming months, what is your current opinion on ZHY and generally high Yield US bond funds? Do you remain comfortable owning these funds in a relatively conservative income portfolio?
Many thanks.
John

Upvote 9

Read Answer Asked by John on November 10, 2023

Q: I really don't understand how bonds work.
But I sense there is a good opportunity to purchase bonds now that interest rates are close to peaking.
It took me about 2 years to come to an understanding of the stock market. My first stock purchase was a pretty frightening experience, and the next 10 or so were not much easier.
I'd be grateful if you can guide me to some good literature which I can study on bonds and which also covers the current market backdrop.
Thanks a lot.

Upvote 25

Read Answer Asked by TOM on November 09, 2023

• Global X Cash Maximizer Corporate Class ETF (HSAV)
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Q: Can you please help me understand HISA ETFs - for instance, I see HSAV dipped down to $108.75 on Oct 30, then bounced back up. In an ETF where there are no distributions, what would explain the dips? In theory, shouldn’t it continuously increase in price?

Upvote 3

Read Answer Asked by Eric on November 09, 2023

• iShares Interest Rate Hedged High Yield Bond ETF (HYGH)
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Q: Hi Team
Would you advise HYGH as a small position (2-5%) for RIF income. With the rise in interest rates , its hedging seems to have protected its unit value and should continue to do so if there are further increments upward or is it just too risky for an older guy. Best Regards. gary

Upvote 7

Read Answer Asked by Gary on November 08, 2023

Q: a) Is it risky to purchase a corporate Bail-in Bond? Even if they have been rated as A or A-?
b) Can you explain what a bail-in bond means from the purchaser’s (my) point of view?

Upvote 2

Read Answer Asked by Graeme on November 08, 2023

• iShares 20+ Year Treasury Bond ETF (TLT)
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Q: Hello 5i,

David asked a question about timing a purchase of TLT. The answer indicated now was a good time but the recommendation was to buy an aggressive bond. Can you list two examples from the US, CAN, and 1 from a global perspective that would meet the description of an aggressive bond?

Thank you,
D&J

Upvote 0

Read Answer Asked by Jerry on November 02, 2023

• Altamira High-Interest CashPerformer Account F U$ (NBC201)
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Q: What is the present yield and MER of above fund? I hold this fund presently in a U.S. managed account.

Upvote 0

Read Answer Asked by Lorraine on November 02, 2023

• iShares 20+ Year Treasury Bond ETF (TLT)
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Q: Your response to "Alex" on October 23, 2023 and today's National Post article by David Rosenberg are very positive for the immediate success of TLT. Given its reasonable payout, it seems worth waiting for a turnaround; however, its recent performance has been abysmal. Timing thoughts? It is a worthwhile long-term hold?

Upvote 0

Read Answer Asked by David on November 01, 2023

• Mackenzie Financial Corporation (QTIP)
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• BMO Short-Term US TIPS Index ETF (ZTIP)
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• iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) (XSTH)
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Q: XSTH, QTIP, or ZTIP - which do you prefer for TIPS etf in CAD and why? Feel free to include another CAD name I've not mentioned if applicable

Upvote 0

Read Answer Asked by Patrick on November 01, 2023

• Constellation Software Inc. Unsecured Subordinated Floating Rate Debentures Series 1 (CSU.DB)
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Q: my debentures have traded down to 120.
what should I do with this large capital loss and what is the future of these debentures for current holders? appreciate your analysis and direction.

Upvote 0

Read Answer Asked by john on November 01, 2023