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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: 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: Dear sirs,
Looking for your insights into the outstanding debt of both company's, noting the large discounts in current pricing. Assuming I am comfortable with the volatility and can hold the debentures should one expect to receive par value on maturity
Thank you,
Read Answer Asked by Brad on April 07, 2020
Q: Hello,

When it comes to bonds and interest rates I am like a deer in headlights. What would a negative interest rate scenario impact an etf like VSB and VSG or a longer term bond fund?
Thank you and stay safe!
Read Answer Asked by Rino on April 07, 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
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?
Read Answer Asked by Brian on March 26, 2020
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
Read Answer Asked by Scott on March 26, 2020
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
Read Answer Asked by Ronald on March 24, 2020
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
Read Answer Asked by Rajiv on March 24, 2020
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