Investment Q&A

Q: Re Kim's preferred share question, TD Webbroker publishes a monthly analysis covering the following topics:
Market Commentary
and Strategy ................................................................................................
........................................... 2
Preferred Share
Recommendations ...............................................................................................
................................... 3 - 5
Preferred Share Classes
and Characteristics ...................................................................................
...................................... 6
Preferred Share
Table Notes ...................................................................................................
................................................ 7
Retractable Pref
erred Shares ..................................................................................................
................................................ 8
Rate-Reset Pref
erred Shares ...................................................................................................
....................................... 9 - 19
Floating-Rate-Reset
Preferred Shares ..........................................................................................
................................ 20 - 21
Perpetual Prefe
rred Shares ....................................................................................................
....................................... 22 - 25
Fixed-to-Float Pr
eferred Shares ...............................................................................................
............................................. 26
Floating Rate Pref
erred Shares ................................................................................................
............................................. 27
Split S
hares ..................................................................................................................
................................................. 28 - 29
U.S. Dollar U.S. Iss
ued Preferred
Shares ......................................................................................
............................... 30 - 36 (It's 36 pages)

Also http://www.prefletter.com/ publishes monthly recommended issues. A single copy is about $20

Q: I have been charged with buying $1MM in preferred shares so have to get it right! I ETFs are a good option but is there a site that lists available Canadian preferreds? Are they as relatively scarce as in America?

Thank you.

Q: The Dundee preferred shares, at 11% yield and with a reset date of Sept 30, 2019 at govt 5 year plus 4.1% look interesting. Do you feel this company is at risk of going broke?

Q: In spite of a climate of increasing interest rates, Canadian reset prefs prices are falling while CPD seems to be holding its own. Could you give me some insight into this. Would you continue to hold , increase or decrease position in Canadian reset prefs.

Q: Hi Guy's,

ECN is purchasing, via a Dutch auction, a fair amount of common stock.

I own the preferred stock and feel that this action makes the preferreds less secure.

What is your take on how the preferred are affected.

Thanks for the help
John

Q: Good afternoon,
Can you help bring some light to the Rogers Sugar news release and halt, sounds like they are issuing 85M debt to pay off existing 60M debt and some other items I don't fully comprehend other than Mr. Market doesn't like the news and the stock is down 2% Tuesday. What are your thoughts on this development and stock drop?

Thanks,
Craig

Q: I hold this prefferred stock for years, bought by my then financial adviser. Is 5% of my RRSP portofolio with return -6.89%. It looks like dead money, I think it may be better holding TRP or other income stock. Not sure how this stock works, can I sell it or is better to hold until expires (not sure when?)

Q: Why are rate reset preferreds falling. In a rising rate environment , in my view, value should be increasing. Why is this not the case here

Q: I am looking to add to HPR because its holdings are predominantly in floating rate or fixed-to-floating rate preferred but am having trouble understanding how sensitive the overall holdings are to rising interest rates. HPR has reacted positively to rising rates over the past six months but negatively over the past few weeks so its hard to judge how it will react to further interest rate increases. Part of the problem is that most of the holdings are fixed-to-floating rate and the period of time before those holdings convert to floating rate. Do you have any thoughts or further information on this?

Q: JE announced a convertible note offering for 80 to 100 million. Is this good or bad news and what is likely the market reaction. Does this mean they are possibly looking at another transaction/purchase? Your comments are always appreciated.

Q: What do you think of the above two rate re-set preferreds - good dividend yields currently of 6.863% and 6.796% respectively - have been pretty stable and though not that liquid - seem like a pretty good place to put some money for income?? would appreciate your opinion - regards - Karen

Q: Enc.pr.a

Hello 5i
Thanks for the informative service.

I have owned this ecn capital pref share for a while with original purchase price below the $25 issue. I am surprised to see the price back down to this level again given it is a rate reset with a minimum yield% reset.
Has the risk level of this pref or the company increased recently?
The volume is very low. Is this just simpathy selling associated with Efn poor performance and lowered outlook?
Your though on what is up with this share is appreciated.
Dave

Q: Over the last little while I purchased the above securities because of a rising rate environment. All have performed as expected except ECN.pr.A. Is there any particular reason for this. Would it be wise to average down . I’m still thinking that with rising interest rates their will be more demand for their services. What about the margin will this increase, decrease or stay the same ?

Q: What do you think of Manulife's rate reset preferred MFC.PR.R:TSX it seems to have held up very well recently. Are there other rate reset preferreds you would recommend.

Q: I’m having trouble getting details on the D debenture beyond the 100.10 last trade price. I can’t find out if it pays a divvy or how it converts to shares and when I have never owned a debenture ... please educate me.
Thanks
Bryan

Q: I am looking for a preferred that can be expected to hold its' value over time. I understand that it should be a decent credit rating, have a fixed reset rate and be non-convertible. Does this preferred meet that criteria, or could you recommend one ?

Thank you,

Tim

Q: Are preferred shares a better investment for someone hoping to live on dividend income during retirement?

Q: I have a reset preferred that has done quite well for me this year.I would like to add another but i am struggling to find a resource on the internet that gives me "current" listing,pricing,rating,duration,etc. Could you help me out.
How do preferred shares perform in a stock market decline?

Q: I have a $20,000 C.V. 5.5% Dec 2018. In view of the proposed takeover of Aecon, should I exercise my option to convert to common shares, and if so, when would be the appropriate time to do so ?

Q: Do you think the preferred share for ECn( ECN.PR.A) would be a good investment if the company does well. This will be held in an RESP.
Thank you for your answer.