Investment Q&A

Q: Hi Team,

I realize this question might be off the beaten track but was hoping you might be able to shed some light on the implications of holding a debenture issued by Cominar now that it is experiencing a change in control in favour of Iris Acquisition II LP.

I have received a corporate action notification that I have an option to receive $1010 CAD for every $1000 CAD principal amount of Cominar Real Estate Investment Trust 4.5% Series 11 Senior Unsecured Debentures due May 15, 2024 tendered. With no action on my part, debentures in respect of which the Optional Put Right is not exercised will remain obligations of Cominar under the terms and conditions of the Indenture and will continue to accrue interest in accordance with the terms of the Indenture.

Any idea in plain english if the debt obligation has a higher risk profile to the holder if the option is not taken? If you were the holder, would you exercise the option or do nothing?

Many thanks.
Michael

Q: Will XSB keep going down so capital loss is greater than return in interest?

Q: Considering selling ZAG at a small loss and buying XSB for more stability.
Your thoughts would be appreciated. Thank you.

Q: I have had exposure to this fund since inseption and would be very comfortable investing under 8$ .
Can you explain why the sudden dropp.
I assume some Russian exposure.
What are your general comments about this fund.
Thank you!

Q: with interest rates rising and perhaps the yield curve flattening what is your opinion of this preferred share etf
thank you

Q: Peter,

Go on the assumption that we will be in for a period of slow and consistent interest rate increases. I am very interested in how a bond fund could possibly increase the NAV during this period. For every uptick in the rates every single holding, whether of a short or long duration loses value. Do you agree ? What could a fund manager possibly do during this period to actually increase the NAV? I guess I am interested in the tricks of the trade or is it simply grab the umbrella and hope the rain eventually stops.

Thank you

Paul

Q: Hello 5i
We're curious about FLX (formerly FLOT)

Held since 2018Dec it was up ~2.85% including Interest pmts at 2021Dec31
Since then it has further dropped and we are now down ~2.0% (including interest pmts)
Would appreciate your opinion whether this is due to the change in its
investment objective introduced in December, or is it more related to the market
scenario since then.

Would you recommend holding or exchange for some safer bond ETF ?
If the latter could you please provide a couple of examples

Thanks for your guidance.
Terrance

Q: Have these ETF's in my portfolio for at least 5 years. With the current interest rates environment... keep or swap? If swap which one? What would be a better option?

Thanks for your great service

Kevin

Q: Hi 5i,
I noticed ENB and TRP have both recently issued long bonds out to year 2052/2082. I don't understand the strategy of a 30yr/50yr bond, please explain. I think these were issued to repay a series of "Preferred Shares", which looks to me to be a bit broken. Can you tell me how many other companies are doing this?

Q: If the yield curve flattens either shorter term yields move higher and/or longer term yields decline. What is the more likely scenario?
Do you think the curve may flatten in next 6 months or so?

Q: Morning,
Best vehicle to park cash today. Criteria: safety.
Thanks.

Q: Could you please indicate which of Treasury Bills, GICs, NHA MBSs, and Canada Mortgage Bonds in general pay the highest rate of interest. Also, could you grade from lowest to highest risk? In view of the possibility that interest rates will rise would you wait to purchase, or if rates do rise would the increase be sufficient, in your opinion and not knowing the amount to be invested, to make a significant difference?
Thank you for considering my questions.

Q: 65 yr old retiring this year. I hold the following: XAW (35%), XBB (20%), XIC (12%), CDZ (7%), ZSP (7%), VTI (7%), ZIC, VTI and ENB at 5% each.
In view of the current conditions, would you increase the fixed asset portion and reduce equity? Which ones would you add to and which ones would you reduce/remove?

Q: Dear 5i team.

Can you give me your thoughts on holding zcs through current market backdrop of higher inflation combined with the geopolitical environment?
With it's steady decline lately, what do you think needs to happen to turn the tide?

Thanks for your help.

Q: Portolio Analytics shows that I'm woefully short in fixed income. I am wholly unfamiliar with the category - is it as simple as shopping for the best GIC rate, or are there other, better options I should consider? Please give me some recommendations. Thanks.

Q: I’m interested in a US bond fund that pays some dividends.

Vanguard has some funds, VFIDX & VICSX that pay 2%+ and appear to suit the bill.

Have you any recommendations in this area?
Is there any reason to stay out of this sector?
What do you forecast the near future, say 3-5 years, to be in US bond funds valuations?

Q: With safety and capital preservation in mind, which corporate or gov’t bonds etf, if any, would you recommend in this rate increase environment and explain briefly why. Thank you!

Q: I have used hfr to park cash for several years. With rates about to rise I want to park some additional cash there but wondering if there is/are other short-term note etfs you can recommend for comparison.

Thanks very much.

Mike

Q: What do you think of this new ishares TIPS ETF? What is the yield? Does it have a place in a long term portfolio?

Please let me know if you prefer this or ZRR.

Q: Scotia I trade gives me access to purchase GICS, just like stocks from my account.
They state all our GIC issuers are members of Canada Deposit Insurance Corp.
My Question is would you be comfortable purchasing GICS from the following group, up to $100,000 ( the CDIC Coverage) as they provide much better rates than our big 4 Banks.
1) Versabank 2) ICICI 3) B2B 4) Concentra 5)General Bank 6) Equitable Bank

Thanks Guys !