Investment Q&A

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

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

Q: I hold a couple of Ford Credit Canada bonds with one issue maturing in 12 months and the second issue in 36 months. With today's downgrade I've taken a hit on the market value of the bonds, particularly the longer maturity. Is there a risk of default by Ford Credit on these bonds?

Q: would you agree with the expectation of lower rates for longer and if so, what about selling Pref shares which have been killed and switching to a high yield
bond etf or fund? Does this make sense given the current sell off in credit?
Any recommendations for a purchase ? thanks

Q: I have been liquidating my holdings in drift and draft over the last month or so, and I am currently about 25% in cash. Can you recommend a relatively a safe place(s) (stocks, etfs, bonds, etc) that pays a dividend/interest for the next 6 months to a year.
Cheers,

Q: Many high quality bond ETFs are trading at substantial discounts to their NAV. How can this be as the ETF should be representing the value of the underlying bonds? Are bonds being sold so fast that the market makers just can not keep-up with the pace? If XCB and XRB return to their NAV value this could be a buying opportunity? Thanks Ron

Q: I was reading your answer to Dennis about fixed income bonds from banks. I know very little about CBO and Bank bonds but asssume they are near risk free. Do you think there is an arbitrage opportunity in borrowing on a secured line of credit to buy a bank bond? Any particular bond that you can suggest and can they be bought on online self directed brokerage accounts with Canadian banks?
Regards

Q: Is there a US dollar equivalent?

Q: I am a 73 man relying largely on my RRSP for income and it is being eroded very quickly. I have no bonds or other fixed income investments preferring instead preferably dividend paying equity’s. know little about bonds and other fixed income products and would appreciate any advice you have on specific investments I should consider.

Thank you as always for your advice.

Don

Q: Thanks for all your hard work during this uncertain period.

I'm transferring conservative Mutual fund monies (to get out from under their fees) over to Questrade.

I want to keep that money conservative. I'm not drawing back, but just trying to keep my allocation.

I've read that similar bond ETFs are not the best way to go forward. Some recommend cash, even US cash but this seems too fearful.

Please recommend an ETF option for this situation.

Q: Hi Peter & 5i,
Thank you for all your professional advice with your years of experience and calmness during this market turmoil.
My question is about bonds.
I have a portion of my fixed income in CBO.
Currently a retail investor can pick up some fixed income bond/debenture from the above mentioned banks with longer term maturities (say 2028 to 2030, they are callable between 2024 and 2026) with a 4% interest rate at current valuations (which are below $100). Even if they did get called then you would get the capital gain and the better interest rate for 4 to 6 years.
Do you think it would make sense to sell a bit of CBO and buy a few of these bank instruments in the current environment?
Your opinion is much appreciated. Thank you.

Q: XBB, HFR and FLOT have not held up well during this challenge. Can you suggest some liquid bond ETF's that will simply stay flat and pay a modest dividend?

Q: Retired, dividend-income investor. I own ZWC and ZRE and am thinking of topping them up. Their share prices have obviously taken a hit and buying more at these lower prices with magnified dividend yields "appears" attractive.

What I am wondering is related to the continuation of the dividend. By my numbers, ZRE is yielding 7.4% and ZWC 10.5% (annual dividend divided by current stock price). Am I correct that the yields are supported by not only the underlying security, but the covered call option? What happens if the underlying security reduces their dividend? I guess my real question is...is there a risk of the ETF dividend being cut?

Thanks...Steve

Q: Which Canadian monthly income ETF would you choose XTR or ZMI? Is there another you think may be better?

thanks,
Paul

Q: Your thoughts on XHY in a RRIF. Would you consider selling and using the cash for something with more upside potential. Thank you Barb

Q: I seem to remember in past recessions that I was able to buy bonds of troubled companies like Air Canada and GM with yields in excess of 12%. I just looked on TD WebBroker and AC bonds are YTM 3.5%! No thanks! Definitely doesn't sound like a good risk reward, and there were many other companies with still 'normal' looking yields. Any thoughts on when bonds will be re-rated (or not)? Even the energy sector at some point should be yielding much much higher, with better risk profile than equities.
Alternatively, I always hear that the bond market is smarter than the equity market. Could this be a sign that equity markets have over-reacted? Thanks for all your good work!

Q: I have few bonds in my RRSP portfolio, one of them is RUSSEL METALS (HY) 6%19APR22. The price for this bond is down significantly in the past 3 weeks even though there is only 2 years to maturity. While my other bonds down 3-5% this one is down almost 20% so I don't think it can be explained by investors selling to free up cash... Is a risk that Russell Metals will go bankrupt in two years or will not be able to pay bond value at maturity? Is there a risk that bond issuer defers payout on maturity date or somehow avoids paying maturing bonds?

Q: Good Morning
I own two Bank of Nova Scotia bonds. The first is issued in Canadian funds and matures in 2021. The second is issued in US funds and matures in 2022.
The Canadian bond has dropped in value by half a percentage point in the last month. The US bond however dropped by more than 4%.
Is there an explanation for the drop of the BNS US bond?
Thanks

Q: Can I please get your opinion on buying the CSU debentures for a juicy yield (7.5%) and safety of capital? Is it an accidental high yielder in a bad market?

Thank you very much.

Q: Good Afternoon
Can you please provide a site where we can get the prices of Corporate Bonds?
Thanks