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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 have a question about Corporate Bonds that are now deemed 'junk bonds'. Bombardier is one example.
1. Is the primary risk associated with the company going into insolvency?
2. Is there a risk, like Dividends, that the Yields on those bonds can be changed / amended later on?
3. What are your thoughts on corporate bonds like Bombardier? Are there any corporate bonds that you see as a good holding to have?
Read Answer Asked by Michael on April 14, 2020
Q: What is your opinion of getting into investment grade corporate bonds at this time? Yields look particularly attractive compared to government bonds. Are there any that you would recommend?
Read Answer Asked by Gary on April 14, 2020
Q: Hello 5i and I hope you're well.
Under current conditions with interest rates, Feds and bank of Canada injecting so much money into the economy, would you recommend corporate bonds or T-bills ETFs. And, what terms: short/medium or long?
Thank you and be well!
Carlo
Read Answer Asked by Carlo on April 13, 2020
Q: Are there Canadian equivalent to TIP and STIP. I don’t want to add to my risk by not being hedged. I’m looking for a way to protect against inflation at some point. Is there another way besides inflation protected bonds?
Thanks as always for your insight
Read Answer Asked by Bryan on April 09, 2020
Q: If I believe that there will debt problems before this is over , does one want to continue to hold HFR. I have held it for a couple of years but would sell it if things go down to add to stocks I like. A couple of weeks ago it went way down when market crashed. I read your answer to stay put as things were a little crazy in bond market. Is it the worry of the bond holders that the companies will go under and in fact this is not a real safe holding right now as I see 1|2 of it's holdings are BBB?
Read Answer Asked by Geoff on April 09, 2020
Q: Just comment in response to your statement today to Peter that government bonds held to maturity will never lose money - most government bonds trading today are trading at a premium. So if you buy at, say, $102, at maturity you will only get back $100. Loss of $2 (about 2%). This loss is accounted for in the yield-to-maturity, but is a loss nonetheless. Some of the current premiums are significantly higher than this.
Have I got this wrong?
Read Answer Asked by grant on April 08, 2020
Q: Hi team
I have the RBC monthly income fund, ranked as 4 star by morning star
how does it compare to XTR in a non-registered account for some income and
growth is secondary thanks

I also have a P H & N monthly income fund and could not find the symbol
if you can compared the 3 to hold for income and some secondary growth
it would be appreciated
thanks
Michael
Read Answer Asked by Michael on April 06, 2020
Q: Hi 5i Research Team,
I am interested in investing in both Canadian and US T Bills etfs. Please recommend 1 or 2 in each.

Thanks
Read Answer Asked by Harry on April 06, 2020
Q: Hi team
looking for an etf for real return bonds (short term) vs XSB which is also short term
what is the main difference in terms of safety and returns between the 2 ? it is meant to be in a RRSP
thanks
Michael
Read Answer Asked by Michael on April 01, 2020
Q: Hello, I would like to get your best guess as to how the cdn bond market would react under 3 different scenarios.

1. Rates stay static for the next couple of years as we slowly make our way out of this and there no other real shocks to the system.

2. Rates rise as things improve much quicker than expected and the economy booms along with higher inflation than expected.

3. The situation slowly get worse and prolonged and rates fall to below zero.

I am confused at the best of times but these days are setting things to a whole new level.

Currently own xbb and vcit as fixed income. Better options?

Thanks for all you are doing it really is helping.
Read Answer Asked by Adam on April 01, 2020
Q: Hello
Can you suggest an American ETF like VCSH but with a shorter duration for corporate bonds which is also less volatile?
As well, do you know of any American ETFs like SHY but with shorter duration for US Treasuries? SHY includes Treasuries of up to 3 years.
Thanks
Read Answer Asked by Terry on March 30, 2020
Q: I have hard time to understand as to why the bid price of a BROOKFIELD ASSET MANAGEMENT bond maturing on 03/08/24 (Cusip 11257ZAD yield 5.04) is only 89.424 today?
Other corporate bonds in my portfolio have not dropped as much. For instance, a Telus bond maturing in 2023 has a bid price of 99.802.

I thought BAM bonds were of high quality since they are rated A -

Are there any issues with respect to the financial strength of BAM bonds?

Would you recommend holding or selling this BAM bond??
Thanks
Read Answer Asked by Terry on March 27, 2020
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