Investment Q&A

Q: Hi, since the end of Sept. TD.PF.B price has risen by 5% & RY.PR.H by 7%. When purchased TD.PF.B interest rate was 3.8% & RY.PR.H was 3.9%. Their 5 year interest re-calculation date is 2019. During that same period ENB.PF.E price has risen by only 2.5%. At purchase ENB.PF.E interest rate was 4.4% & it’s 5 year interest re-calculation date is 2020. The present dividend yield of ENB.PF.E is 1% greater than the two bank preferred shares. My question is, do you have insight as to why the bank preferred shares have performed much better than the Enbridge preferred shares since the end of Sept. Thanks … Cal

Q: I am retired, living on dividend income and looking for more yield to supplement my income. Thanks to 5i, I recently became familiarized with covered calls and chose ZWU yielding 6.5%.
Now I am interested in Debentures. I recently read in 5i Q&A a question on CSU.db debentures that guarantees 6.5% plus inflation rate to yield 7.5-8%, and your response was that it's a quality security.
Regarding Debentures, are they simply traded like a regular stock with scheduled dividends paid that can be bought and sold as I see fit without penalty?
Debentures seem like a low risk way to get a higher yield as the price hardly seems to fluctuate. Is this an accurate assumption?
Would you recommend for an income investor to invest 5-10% of portfolio into 1-2 debentures for higher yield? If so, can you recommend 1-2 that look most attractive for a 1-2 year hold?

Q: Hi
Can you explain to me why this BMO preferred has a 7% yeild? The rest seem to have normal yeilds.
Is there a reference list of preferreds on the TSX? I cannot seem to find any such list on their web site.

Thanks
Don

Q: Preferred shares usually have an issue price of $25. Would it be correct to assume that in a rising interest rate environment CPD has a chance to climb towards the $25 range?

Dumb question?

Carl

Q: i own two prefs...gwo.pr.T bmo.pr B...great life has dropped in price and bmo is steady..the yield on gwo is attractive..
has the say 5 yr bond spread or the pref yield spread between lifeco's vs banks widened? also your thoughts on gwo thanks as always..

Q: I recently read a recommendation to sell rate reset preferreds because "the 5 year GOC has moved too far too fast from 0.40% one year ago to 1.80%+ now." They further worried that upside is limited from here, and downside is huge if there are no buyers.

I thought that we seemed to be in a period of rising rates and that a laddered portfolio of rate reset preferreds was a healthy option for part of one's portfolio, given a desire for some income. I'd appreciate your thoughts. Thanks in advance.

Q: Hi team,
My Royal Bank Prefer RY.PR.B got redeem today, and like to put the money into similar prefer share. Any suggestion is highly appreciated.
Thanks as always,
Regards,
Tak

Q: I am 85-years old, locking for a safe income investment. Like to have your advise on ENC.Pr.c Min Rate reset, FFH.PR.k 5-year rate reset, BMO.Pr.s 5-yr R.Rest Preferreds. How safe are they in a rising Int. rate rise? I would also appreciate you expert advise of your chaises. Many thanks, J.A.P. Burlington

Q: I am becoming more interested in debentures as part of the fixed income portion of a portfolio.

1) Doing the math on CSU.db it would not pay to buy them if they are called in 2020. What things do you look at to forecast whether or not a company would ever call them. Is calling them a rare or regular occurrence? I realize each company has different needs.
2) Are debentures normally fully explained on the company's web sites re terms and conditions?
3) Are there any other websites, publications etc you would recommend so I can learn more.

Thanks

Paul

Q: Can you explain the hydro one installment receipt?

A good investment?

Thanks ian

Q: This is comment on your answer to Brian's question. For the record the merger has been approved during the July 11th meeting. It is important to know that instruction on options have to be submitted by tomorrow. Otherwise the default is receiving PPL shares subject to proration.

Q: good morning; what will happen to this stock once ppl has completed take over.thanks brian w

Q: I am 70 years old, been retired for 14 years, and can't risk losing capital. Thus my portfolio is currently 100% in fixed income.... 65% in laddered 1-5 year GIC's, 10% in bond ETF's (CBO, CLF, XBB), 5% in preferred shares, and 20% in cash. In the preferred share category, I currently hold CPD, HPR, and ZPR equally. Given a steadily increasing interest rate environment, would you recommend selling CPD and adding to HPR and ZPR, due to their leanings towards rate re-sets? Is a 5% total weighting for preferreds appropriate for this fixed income portfolio? What do you recommend for the remaining cash, given my mandate for "safe" investments? Should I stick with additional GIC's or expand the bond allocation? Thanks!

Q: Is there a place I can find the yield to call for a particular stock ?

Thanks

Paul

Q: hello 5i:
could you detail the differences between HFP and HPR, please, and what type of interest rate environment would be optimum for each? Would holding BOTH be a strategy and is it necessary?
And, could you include backtest results as to what could be expected in the case of an extreme drawdown?
thanks
Paul L

Q: Brookfield has a new offering - 4.75% rate reset preference shares, Series 48. Would this make a good addition to an RRSP?

Q: Can you please recommend Canadian and US preferred share ETF's as fixed income part of my portfolio. Would rate reset preferreds perform better in a rising interest rate environment?

Q: I hold the above preferred TA.PR.H CUSIP 89346D727
Holders have been given the following conversion privilege option:
Conversion-to convert on a one to one basis any or all of their cumulative redeemable rate reset series E ist pref shares of TA corp INTO Cumulative Redeemable Floating Rate Series F ist pref shares of TA (89346D719)
Is it better to convert or not and an explanation would be helpful
My sincere thanks

Q: Hi 5i,for some reason I didn't get a reply for my yesterday's question. I would like your choice of the above, perhaps suggesting better ones. Can you explain why are they trading substantially below their book value. How will future interest rate increase effect their price. Can you suggest a web site for rate rest prefers. Many thank, J.A.P. Burlington

Q: Hello i5, Please help me to understand why cm.pr.p @$18.26,paying 4.26%div,redeemable @$25.00 with a floating rate feature trading at, in my view, a large discount price? or is it? Please explain how the actual floating is, in terms of %div on this preferred. Also would appreciate receiving a couple more alike rate reset ones at lower than redeem Price. How would the reset preferred be effected by the prime rate change. Many thanks J.A.P. Burlington