Investment Q&A

Q: Hi ,I hope you can help me with my question
If you own a GIC say. a. 5 year one and the owner passes
earlier ?Can it be cashed
or would you have to wait till the regular cashing date.to settle the estate.
thanks a lot
Margit

Q: Follow up on my question regarding STRUCTURED NOTES as DOWNSIDE protection

1. If a specific yield (eg 6.5%) is mentioned is that guaranteed?

2. Does the buyer of the note receive the entire amount invested at a specified future date?

3. How long do these typically have to be held?

Thanks again for all your help.

Q: Hi Team,

Looking for your valued opinion regarding the Empire Life Class plus 3.0 insurance/annuity product. This would be for a retiree, 64 years old.
Any concerns with this strategy or things to look out for.
Thank you

Q: hello 5i:
can you compare XHY and USHY? USHY looks to have a much higher yield, particularly as its in US dollars. Is there a large risk difference in these ETFs?
thanks
Paul L

Q: Hello 5i,
It was mentioned that XHY should be kept in a registered account as it is foreign income. The dividend is shown to be paid in Canadian funds and the exchange is TSX.Where are the foreign income consequences related to holding XHY?
Thank you for your service
Stanley

Q: Over the last couple months I have increased the fixed income portion of my RSP, and would like to finish with a smallish position in a a high-yield bond ETF. Been looking at PDI and ZHY/XHY (they seem about the same). Some questions:

1) is the current PDI premium normal for this fund on a historical basis
2) the PDI dividend seems consistent, but how do they manage to maintain that level
3) PDI is more international than the others - do you see this as a positive or negative for high-yield corporate holdings
4) do you think it is too early to get into high-yield if interest rates keep going up or if we get into a "significant" recession
5) who do you consider to be the best manager of these 3 ETFs, and if you would buy , which is your pick and why
Thank-you Grant

Q: I am asked for a minimum of $50 when buying and $50 when selling a bond or 1.5%.
Is 1.5% commission acceptable to buy a bond from a discount broker?

Q: Good morning

Having slowly raised my cash position recently and still not ready to jump back in as I believe the market will go lower later this year. Could you list a few places to park these funds ranking from best return/conviction

Q: With the assumption being the market will face a downturn later this year.

What are your three best choices to park some cash today for someone using a bank trading platform like itrade.

The goal being to earn the best return but still have easy access to the cash to buy later in the year or into next year.

Q: Could I have your thoughts on the merits and/or drawbacks of single bonds ETFs - UTEN ; UTWO ; TBIL.
Thanks

Q: I am using this high interest savings account (about 4% ) to hold money for RRIF (monthly)withdrawals. if I am correct there is no trading fee as with PSA etc. Is this the best way of managing this issue?
Thanks for your help Tom

Q: In these times where the financial health of companies are being put to the test, are bond funds like XHY, which hold 60% BB grade bonds and 30% B grade bonds, something that a wise investor should be pulling out of?

Q: Please explain why the yields on these etfs differ so much

Q: Hello I’m wondering if you could name a couple of USD traded etfs that would be as close to the equivalent of PSA or CASH but trade in USD either on a Canadian or US exchange if necessary. Thanks

Q: BELL CANADA MID-TERM NOTE
Maturity May 1 2029 Coupon 6.55

SHAW COMMUNICATIONS INC
Maturity Nov 9 2039 Coupon 6.75

I took in charge this portfolio and did not sell those positions to avoid loss on capital.
Very large position in 2 titles ( 25% + of a non registered portfolio alltogether),with 10-15% capital loss on paper.The objective of this portfolio is safety and long term revenues.Are those investment safe for long term ,and are the 6.55 and 6.75 coupons excellent numbers in the present context of rates etc..? many thanks J-Y

Q: Greetings 5i,
I am retired and typically don't have much in the way of fixed income since we have decent pension income, dividend income from a non-Reg account and some income from our RRIFs (started early to postpone CPP).

However, there is likely opportunity now for short-term bonds (higher yields as bond prices have fallen) and long-term bonds (capital gains when interest rates start to fall). Could you please identify two Cdn bond ETFs that would satisfy this rate dumbbell scheme?

Thanks as always for your excellent service.
SP

Q: Hello 5i Team
Last year stocks and bonds both had a down year, I would like to add to a fixed income ETF that you think would have upside the next few years as interest rate starts to pause and decline in the future. I currently own a position in Vbal etf which has bonds component in it.
Thanks

Q: What are your favourite Canadian bond ETFs given the current circumstances and looking ahead a couple of years.
Thank you!

Q: Hi Peter & team:
IF I buy CSU.DB today at 138 $ and tonight CSU makes their recall announcement , the baystreet computers will grind away for about TWO milliseconds and tomorrows opening price may very well be about 115$ to 118$, and THEN a gradual decline to 100$ over 5 years.
My question is do you agree that this debenture is riskier than it appears since new buyers after the announcement will also expect to make money during the 5 year roll-off. Please poke holes in my theory if you wish...

(Of course the 5 years could also start in 2035 ...)

Q: Where to hold Bonds? As I am winding down my income producing years and shifting to drawing down my savings I am wondering where I should hold bonds. We currently hold no fixed income as we will get a pension from my wife's work when she retires( so historically considered that out fixed income). Bonds haven't really been on my radar with rates so low the past 10+ years but things are changing both in terms or yield and my investment needs. I have 4 options to stash some bonds TFSA, RSP, unregistered and within my Inc. I more or less have things in the right place currently with growth in TFSA, US in RRSP and CAD in unregistered accounts. My plan was to sell some USD large caps once the steam runs out of the current rally and buys some high grade corporate bonds, in or around 10-15% of my portfolio. A bit of the old traders strategy of sell in may and walk away...

So to circle back, the easiest place to do it would be in my RRSP, but some of the reading I have done has suggested I do it in my TFSA as I can get the yield out of the TFSA tax free account at any time instead of locking it in the more restricted RRSP accounts. Shifting the TFSA from growth to income also seems like an appropriate move at this stage nearing retirement ( me semi-retired, my wife in 4 years or less). The 3rd option I am considering is doing it in my INC and using the yield to " pay the bills" so to speak of keeping the Inc cash flow positive as my earning drop with me working less.