Q: this bell reset preferred yields 6.514 for the next 4.6 yrs...would you consider this OK for a fixed income or cash investment?
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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.
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Bombardier Inc. Class B Subordinate Voting Shares (BBD.B)
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Bombardier Inc. Series 3 Cumulative Redeemable Preferred Shares (BBD.PR.D)
Q: Bombardier has announced a conversion for shareholders who want it and are holding series 3 and series 2 shares. Series 3 will pay about 4.58% quarterly based on government bond + 145%. Series 2 is floating rate based on a percentage of prime. I currently hold series 3 with over a 20% gain. What do you recommend?
Q: I would like an opinion On IFC.PR.K for safety and income Thx
Q: Hello everyone at 5i!! Would you consider ZPR to be a reasonably safe investment in a recession? Cheers, Tamara
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Brookfield Office Properties Inc. Class AAA Preference Shares Series GG (BPO.PR.G)
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Element Fleet Management Corp. 5.75% Cumulative 5-Year Minimum Rate Reset Preferred Shares Series I (EFN.PR.I)
Q: Good (not so good ..) Monday.
Have you seen any official press release about these 2 preferred which will reset at the end of June. Prefblog’site mentionned that EFN.PI will be redeemed. I have not seen anything on EFN.PI or BPO.PG. Some cies really drag their feet. Thanks
Have you seen any official press release about these 2 preferred which will reset at the end of June. Prefblog’site mentionned that EFN.PI will be redeemed. I have not seen anything on EFN.PI or BPO.PG. Some cies really drag their feet. Thanks
Q: Good morning and thanks for the role you fill in my investment decision making. I hold ECN.Pr.C (along with HPR and ZPR) and have for years. I have a decision to make regarding conversion. As I understand it I can do nothing and continue at a higher rate of return; convert to a floating rate and have it reset quarterly. Could you please confirm my choices along with your recommendation. Is this a buy and, if not, are there better alternatives? 3-5 year timeline.
Q: hello 5i:
We are interested in a smaller investment in convertible bonds, but don't wish to pursue the ETF route; rather, we'd like to choose the higher grade company DBs. With yield being as important as safety, could you give us your top 3 or 4 company debentures at the moment? What is liquidity like with individual debentures?
thanks
Paul L
We are interested in a smaller investment in convertible bonds, but don't wish to pursue the ETF route; rather, we'd like to choose the higher grade company DBs. With yield being as important as safety, could you give us your top 3 or 4 company debentures at the moment? What is liquidity like with individual debentures?
thanks
Paul L
Q: Hi,
I'm wondering about the new issue for convertible debentures from PBH - is this a good deal, given the interest rate, vs just buying the stock? I notice that the first interest payment won't be until Mar 2023, so a long time for the cash to sit idle. However the conversion price of 160.25 seems pretty good, given the stock closed today at 100.17. If the deal is a worthy one, then is it best to try to buy the new issue, or wait until after it closes to see how it settles? As always, your advice is much appreciated!
Dawn
I'm wondering about the new issue for convertible debentures from PBH - is this a good deal, given the interest rate, vs just buying the stock? I notice that the first interest payment won't be until Mar 2023, so a long time for the cash to sit idle. However the conversion price of 160.25 seems pretty good, given the stock closed today at 100.17. If the deal is a worthy one, then is it best to try to buy the new issue, or wait until after it closes to see how it settles? As always, your advice is much appreciated!
Dawn
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Canaccord Genuity Group Inc. Cumulative 5-Year Rate Reset First Preferred Shares Series C (CF.PR.C)
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Brookfield Office Properties Inc. Class AAA Preference Shares Series GG (BPO.PR.G)
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TransAlta Corporation cumulative redeemable rate reset first preferred shares series E (TA.PR.H)
Q: I've been trying to figure out this inflation/interest rate mess as it relates to my RRSP. I dumped a bunch of low rate government strip bonds in January and I'm thinking of replacing them with these 3 preferreds. They're fixed-rate resets yielding in the 5 to 6% range. They are all below the recall price. I know that trade volumes are low. What do you think?
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Royal Bank of Canada (RY)
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Toronto-Dominion Bank (The) (TD)
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Bank of Nova Scotia (The) (BNS)
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Bank of Montreal (BMO)
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Canadian Imperial Bank Of Commerce (CM)
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Great-West Lifeco Inc. (GWO)
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National Bank of Canada (NA)
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ECN Capital Corp. (ECN)
Q: Seems like there is some indiscriminate selling of rate reset prefs
last few days. Not sure this makes sense.
What are your three top rate reset ideas at the moment, that are NOT in the energy/pipeline sector
Thanks
last few days. Not sure this makes sense.
What are your three top rate reset ideas at the moment, that are NOT in the energy/pipeline sector
Thanks
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Enbridge Inc. (ENB)
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TC Energy Corporation (TRP)
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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ECN Capital Corp. (ECN)
Q: Do you have any rate reset prefs that you think are worthwhile here? Thanks
Q: Hi Peter,
Do you see anything "funny" about this redeemable reset preferred?
Current price is $21.98. Resets on 2022-09-30. Resets at 5YR + 2.92%. Currently the reset is then 2.83% + 2.92% = 5.75%. If PPL didn't redeem then you'd get a dividend rate of 6.55% based on the @21.98 price. If they do redeem then you get a $3.02 gain for 5 months.
Do I have my facts correct or am I missing a detail or two?
Do you see anything "funny" about this redeemable reset preferred?
Current price is $21.98. Resets on 2022-09-30. Resets at 5YR + 2.92%. Currently the reset is then 2.83% + 2.92% = 5.75%. If PPL didn't redeem then you'd get a dividend rate of 6.55% based on the @21.98 price. If they do redeem then you get a $3.02 gain for 5 months.
Do I have my facts correct or am I missing a detail or two?
Q: In regards to CPD or just pref's in general. They have sold off a lot over the past month. Fair to say they have priced rate increases in and are now forecasting a slowdown and rates going lower? Would a partial switch to a TLT-US make some sense here if that is the thesis?
Q: Your thoughts on TPRF. Is there a better active Preferred ETF?
Q: I am a retired senior and primary an income investor with preservation on capital as my main concern. I am considering Royal Bank preferred shares as opposed to common shares. Would you explain the pros and cons and merits if any.
Q: In this article, the author favours the BEP Preferreds instead of the common shares. Would you agree?.....
https://seekingalpha.com/article/4503184-brookfield-renewable-sell-common-buy-preferred-shares?mailingid=27474894&messageid=dividend_ideas&serial=27474894.25362&utm_campaign=Dividend%2BIdeas%2BLaunch%2B2022-04-24&utm_content=dividend_ideas_control&utm_medium=email&utm_source=seeking_alpha&utm_term=Dividend%2B%26%2BIncome%2BSmart%2BList
https://seekingalpha.com/article/4503184-brookfield-renewable-sell-common-buy-preferred-shares?mailingid=27474894&messageid=dividend_ideas&serial=27474894.25362&utm_campaign=Dividend%2BIdeas%2BLaunch%2B2022-04-24&utm_content=dividend_ideas_control&utm_medium=email&utm_source=seeking_alpha&utm_term=Dividend%2B%26%2BIncome%2BSmart%2BList
Q: An information circular I am reading says that shareholders will be asked to approve the creation of two new classes of shares, both Preferreds and that these shares will not be listed on the TSX (but will be subject to approval of the TSX).
How common is this, and how do they trade (how is value determined)?
How common is this, and how do they trade (how is value determined)?
Q: good morning.this is due dec 31 2022 could i receive shares instead of cash. would they cost 2.75.how many would i get for each 1000 worth.thank you brian w
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Laddered Preferred Share Index ETF (ZPR)
Q: I think I misunderstood your previous answers on ZPR to mean it was the better preferred ETF to be in considering it holds rate resets, which should go up as interest rates rise. However, your last answer indicated it holds significant long exposure preferreds, which would cause it to fall more heavily under the current environment?
To be clear, what is your best idea for a preferred ETF right now?
To be clear, what is your best idea for a preferred ETF right now?
Q: ZPR continues to slide. Can you explain why, given rising rates should be helping? Do you see it coming back or is it time to exit. Pref's always seems to be a burn. Thanks.