Investment Q&A

Q: If interest rates drop would short term bonds be better than longer term ,which ever is better do you have any suggestions on bonds .

Q: Recently sold a rental house and am looking for investment in low risk but monthly payment in a non registered account. I’m not comfortable with bonds and so far have come up with either laddered GICs ( paid out every 6 months) or combination of PFL, XFR, and ZMMK. Do you have any thoughts on any of this. Which would have a the best tax rate implications? And would you have any other suggestions that would work best in the current reduced rate environment we are heading in the next few years.
Thanks

Q: Hi guys,
Great service...can you give me some thoughts on this RBC product...Target Date discount bond ETF's...seem to be a good option for safe money looking for cap. gains vs. interest....do you think timing would be right to add to these.? Any preference of government vs. Corporate? Thanks.

Q: The governments of the United States and Canada may reduce interest rates this year. Based on recent inflation data, it appears that Canada will lower interest rates sooner than the US. My question is: Will the yield of Canadian bonds respond to the Canadian interest rate cut, or will it be influenced by developments in the US bond market? Thanks

Q: Hi Peter and Team,

Can you please comment on the credit worthiness of Nuvista? I was considering adding to my existing Nuvista bond with maturity in July 23, 2026 and coupon of 7.875%. I am wondering if I am missing something here?

Thanks!

Q: Given the weaker Canadian economy (and outlook), how does the long Cda bond (xlb) compare to the long US bond (tlt)?
Thanks.

Q: Hi 5i, I have a fair bit parked in CASH and PSA, enjoying the decent interest on the funds I dont want to have exposed to market volatility. My question is, if Canadian interest rates drop significantly sooner and/or further than US rates, would it make any sense to move out of CASH or PSA and in to something like HISU.U?

Understand, of course, this introduces the element of currency risk/volatility. But, ignoring that, would this strategy work to continue realizing interest rates of +/- 5% (assuming US holds longer)?

Thanks!

Q: I hold DYN6001 in my non-registered savings account to generate USD income. It has low volatility but relatively modest monthly income due to management fees. Would ZWB.U be a better choice? Its current yield is 7.2% but comes with an MER of 0.72%. Can you suggest other options for USD income with low volatility?

Q: I didn't get a distribution from QTIP this past month. Any reason why this bond ETF would skip a payment? It's not the first time they did that.

Q: Could you confirm what is happening with the price of long term U.S. treasuries?
I purchased HPYT in January for the high yield to fund my RIF withdrawals. I understand the inherent risks of the structure of HPYT and anticipated some volatility but a generally a flat to upward trajectory given the forecast of reducing interest rates. I know the timeframe is short but wanted to confirm that the reason for the slide in HYPTs price is long term treasury rate increases.
Do you still anticipate rate reductions in US treasuries?

Q: I want to keep a few thousand dollars for the short term in my US dollar Disnat RRSP account as well as in my unregistered account in US dollars. The return on cash in the accounts is 1.7% at the moment. This is pretty low. Can you suggest an ETF ? What are the pros and the cons? Is there a better way?

Q: Hi folks
When is the x divi date? And will it be the 9.75%?
Much thank

Q: Any estimate as to the degree of interest reduction when interest rates begin to fall for these 2 and would one be more resilient in this scenario? Thanx.

Q: Hi, does TD Direct trading Canada offer U.S. high interest savings accounts in addition to their Canadian offerings (eg. TD 8150, 8155). If so, what are the symbols. Thanks.

Q: Hi,

My partner I are doing financial planning, we will need a relatively significant (to us) amount of cash in the next 2-5 years for replacing aging cars and a down payment on a larger house.

I am always hesitant to hold cash/GICs for fear of missing out on growth opportunities. Currently, almost all the funds in our RRSPs and TFSA's are invested EXCEPT a long term GIC that came to term and is now sitting in cash (some in TFSA, some in Non-registered). We will need all this cash in the next 2-5 years.

I am looking for ideas on how to manage the cash.

Right now, the best option I can see is GICs with various terms, do you have any other suggestions or ideas to consider?

(we have already owned a house, so cannot use RRSP loan or the new FHSA)

Thanks

Q: What will likely happen to PSA and CASH as interest rates drop?

Q: Good morning, I’m looking to park some cash, both CAD and USD in a savings account ETF. What are your favorite, high yielding, ETF options? Thanks

Q: EVV has a daunting monthly-pay dividend that seems, at first glance, to be too-good-to-be-true. However, the dividend is comfortably less than the cash flow number. Is the dividend sustainable and can the security's price be expected to be reasonably positive in this environment?

Q: Where to park $ for 1 to 2 years looking for liquidity interest and safety. Recommendation? Thanx

Q: With the up coming US election in November and the pressure on the fed to cut rates. What are your thoughts on where the TLT will be in the latter part of this year and would that likely be the high for the TLT for the next 12 months?

Thanks.