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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: Good morning,
I am looking to establish some additional convertible debenture positions( I currently own an Exchange Income cv debenture) and would appreciate your feedback/suggestions , with a goal of 4.5 - 5% yield in companies with healthy balance sheets and a high probability of being able to service the debt and repay principal.
Thank you

Read Answer Asked by Brad on August 02, 2018
Q: Hello 5i team,
I'm thinking in investing in Preferred shares; to that end and for starters, I examined the CPD chart from 2008 to date.
I noticed that the share value dropped by 25% in the 2008-09 recession; I can understand that. But it also dropped by 25% in 2015; could you please enlighten me as to why?
Could you please explain the pros & cons of investing in a preferred ETF versus in particular preferred shares?
Thanks,
Antoine
Read Answer Asked by Antoine on July 25, 2018
Q: The Colabor 6% debenture, GCL.DB.A , maturing in Oct 2021, is currently trading at 75% of par. The yield to maturity is approx 18%.
In order to benefit from this excellent YTM, the company “merely” has to stay solvent for the next 3-1/2 years.
Obviously there is risk here, but do you think that the chance of GCL’s survival until then is reasonable?
Read Answer Asked by Gregory on June 22, 2018
Q: where can I find info on whether a preferred is rate reset or not? my discount broker cannot seem to offer help in this regard
Read Answer Asked by steve on June 20, 2018
Q: I own ENB.PR.N and it comes due to reset about the end of this year. I’m down about $4.00 and am wondering what is the prudent thing to do? The reset by my calculation would be similar to the interest I’m receiving now. Is there any advantage to selling or should I keep it at the new rate for the next 5 years and hope for an improvement? I dont imagine it will be called.
Thanks for your input on my problem.

I get a lot from your Q and A. They have given me good guidance through the years.

John
Read Answer Asked by John on June 11, 2018
Q: I have a large holding of WFS.PR.A. I have done reasonably well on it, with 5.25% return on capital distribution and a stable price, it was much better than any other fixed income I held.
Here is my dilemma, I have to either redeem it now or hold until 2025. Expecting interest rate to go up, I am not sure it will hold its value. My thinking is to redeem it now and perhaps buy it later at a lower price, or just move to other investment. I know this decision is mine, but I highly value your opinion on what you think my best option would be.

Thanks
Read Answer Asked by Saad on June 08, 2018
Q: I must have made a typing error in my original email it is enb.pf.g series 15 would you exchange this for shares of E SPLIT plse feel free to deduct another question
Read Answer Asked by Marcel on June 06, 2018
Q: Hi,
Just noticed that TH has issued a Treasury Offering of Convertible Unsecured Senior Notes. The size of the issue is US $ 50 million, par value $100.00. They are 5 Yr cd's witha coupon of 5.75% and a converstion price of US $ 14.75 (equivalent to about Cdn $ 19.12)

Would you feel this is a good value cd, or are we better to just buy the stock directly? As always, we value your opinion.

Thanks,
Dawn
Read Answer Asked by Dawn on May 31, 2018
Q: Good morning. I own some kinder Morgan preferred shares - kml.pr.a specifically - and would appreciate your assessment of how the takeover of the TMP by the Cdn. government might affect the valuation of those shares. I assume that these shares would still be the responsibility of Kinder Morgan and not the government. Also, do you sense any increased risk related to these shares given this development. Thanks.
Read Answer Asked by Donald on May 29, 2018
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