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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
My question is about which preferred shares can be classified as being part of a FIXED INCOME component of a portfolio.

1. Would you classify the rate reset preferreds as part of a fixed income portfolio?
2. Would you classify also the perpetual preferred shares as part of a fixed income portfolio?
3. Would you classify only the investment grade preferred shares as part of a fixed income portfolio (e.g banks and insurance companies) ?

Some analysts include only rate resets and not perpetuals as part of Fixed Income. Yet others only the investment grade preferreds as part of fixed income.

What is your opinion?
Read Answer Asked by Terry on December 05, 2017
Q: I have used the Financial Post site for convertible debenture quotes for many years. It was an awesome site that providing me with all the info I needed for convertible debentures trading on the TSX. About 4 weeks ago it went away and I have been unable to find another site that was comparable to this one? Does anyone know another site that provides a summary of quotes for Canadian convertible debentures?
Read Answer Asked by Robert on December 04, 2017
Q: This is a reset preferred that I bought in the $16 range. With increasing interest rates and collecting the interest, I have done quite well. As long as interest is predicted to rise it will increase in value.
I was thinking that about selling if there is a forecast that interest rate will rise again in Dec or Jan. Will use proceeds to buy ENB in The midst of tax loss selling giving me a better dividend and more opportunity for growth. What’s your view on interest rates and buying ENB ?
Read Answer Asked by Roy on November 28, 2017
Q: Which would you expect to perform better in a rising rate environment? PR slightly (by about 1%) outperformed HPR over the past 2+ years (since inception of PR), has a higher MER and both are actively managed.
Read Answer Asked by Robin on November 21, 2017
Q: In my previous question I asked about BAM.PR.R not the common stock BAM.A. Could you please revisit my previous question.
BAM.PR.R is a reset preferred.
Read Answer Asked by Roy on November 17, 2017
Q: By complete luck I bought a good chunk of aurora a couple days ago which played off nicely yesterday and today. Any idea why the big jump? Also I have been reading and this article just came out. https://www.newcannabisventures.com/aurora-cannabis-converts-remaining-2018-debentures/

I don't fully understand everything in it. So bassicly they will be converting debentures into more shares? Does it effect your current shares? It's good right?
Read Answer Asked by Michael on November 08, 2017
Q: Hello 5i,
Which preferred do to you prefer? Pardon the pun.
I'm seeking USD dividend income from Canadian companies to take advantage of the div tax credit. Can you suggest other vehicles or strategies to achieve this?
Are these perpetual or rate reset? With rates increasing, why aren't these going down in value? The yield seems to be north of 5%. Any obvious risks I may be overlooking?
Thank you.
Read Answer Asked by Carlo on October 31, 2017
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