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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: Would appreciate your assistance in finding a list (preferably US) of large cap Cos. that offer pref. shares covering broad market segments. Thank you.
Read Answer Asked by Robert on February 05, 2019
Q: What’s the difference between the different BAM shares, any preference?
If we already hold BAM.PR.N , should we change them to another BAM?
Read Answer Asked by William on January 31, 2019
Q: How do Preferred shares typically respond to changes in interest rates?
Read Answer Asked by Gary on January 24, 2019
Q: Aurora Cannabis announced an offering of convertible senior unsecured notes due 2024 and valued at $300 million USD. Net proceeds from the offering of the notes are to support its Canadian and international expansion initiatives for future acquisitions. The share value dropped ~10% on the news. May I have your thoughts on the market reaction? Thank you.
Read Answer Asked by Martin on January 18, 2019
Q: I HAVE CONSTELLATION CSU.DB AND AM LOOKING FOR ANOTHER DEBENTURE. YOU HAVE RECOMMENDED CJT.DB IN THE PAST. OF CJT AND CHR WHICH IS YOUR PREFERENCE. ANY OTHER DEBENTURE YOU MAY CONSIDER TO BE WORTHY WOULD BE WELCOME. THANKS
Read Answer Asked by Maureen on January 16, 2019
Q: Would you please help me understand how the preferred share TD.PF.B resets it’s new interest rate later this year. The prospectus states that the new interest rate will be equal to sum of the Government of Canada Yield on the Fixed Rate Calculation Date plus 2.27%. My two questions are 1) What is the present Government of Canada Yield as mentioned in the prospectus to be found on the Bloomberg Screen GCAN5YR page, and 2) What is the Fixed Rate Calculation date? Is it July 31 2019 as mentioned in various parts of the prospectus. Thanks ... Cal
Read Answer Asked by cal on January 15, 2019
Q: Ecn's preferred shares, ECN.PR.A, are down $5.00 or so since their issue last year, pay over 8% & their issuer ECN seems to be doing well. Is this quite a risky investment with a dividend of 8% percent for someone seeking yield? Is it fear of rising interest causing the drop or is there a problem with ECN that I'm unaware of? Thanks as always for your sage advice.
Dave
Read Answer Asked by Dave on January 14, 2019
Q: Hello. Happy New Year

I own several preferred shares issued by different companies... ENB(reset), FTS(fixed), FFH(reset), TRP(reset). I bought them many years ago and have some loss. Since they're all outside my RRSP and TFS, I'm thinking to sell all, replace them with new preferred shares issued by another companies and then claim a capital loss. Do you think it is a good idea?

Questions:
1) What preferred shares do you suggest I should buy, fixed reset, perpetual?
2) Which companies preferred shares are ok to buy?

Thanks
Read Answer Asked by Esther on January 14, 2019
Q: I am looking to purchase some prefer shares because the prefer shares price down quite a bit in some cases. I compared two prefer shares offered by the same company "BrookField Asset Management Inc". BAM.PF.D , current price $21.10 yield 5.81% vs. BAM.PF.I current price $25.58 yield 4.63%. Both have the same face value of $25, why priced so differently on the market, are their risks different? So in general, how to pickup a prefer share from others?

Thanks,
Read Answer Asked by Joseph on January 08, 2019
Q: I purchased 300 shares of ENB.PR.V on TSX @$21.25 but Itrade charged me $29.24 USD, on inquiring with them, they told me this PR would only be purchased in USD. I understand dividend is paid in USD . How could I tell when I purchased them (for future) since quotation was in Canadian dollars? Lots of Canadian companies pay a dividend in USD
Thank you
Cec
Read Answer Asked by Cecil on January 08, 2019
Q: I initially purchased these preferred shares when they were yielding over 7% for income in my RRSP. Today they are yielding over 9% as the price has fallen considerably. Normally I would be concerned with an investment yielding 9%, but ECN.PR.A have a minimum dividend (6.5% for $25 face value). Do I have reason to be concerned or do you see this as a buying opportunity especially since they have the minimum dividend guarantee (as long as the dividend is being paid)?
Read Answer Asked by Robert on December 31, 2018
Q: Would you be able to list a number of convertible debentures from’safe’ companies and at reasonable rates?
Thank you, Team!
Happy Holidays! Let’s hope for a better 2019...
Read Answer Asked by Sigrid on December 27, 2018