Q: I have a small position in this pref in a registered account. I've held it for almost a year and am down on it. I was wondering if I shouldn't add to it at this time given I have sufficient cash in that account?
Ron
Ron
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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: Hello
I'm interested in knowing your thoughts on good investment options for asset preservation but still with some income growth potential.
I'm interested in knowing your thoughts on good investment options for asset preservation but still with some income growth potential.
Q: Are there pros/cons when buying callable vs non-callable bonds where the effective maturity is the same?
Q: hi, what do think about CPD? is now a good time to buy and hold...
Q: Could I please have an update on XHB, Blackrock's Hybrid Corp Bond Index. I asked about this ETF last August and it has since fallen in value quite substantially. On the other hand, the laddered Corp Bond Index from Blackrock, CBO, has held up rather well over the same time frame. Would CBO be preferable over XHB? Or should bond funds be avoided at this volatile time? I am currently sitting on 30% GIC's and 70% cash - no equities whatsoever. Thanks for your opinion.
Q: Hello
earlier question about the enb pref.......ticker is PF.G
The dividend is initially fixed until September 1, 2020. On September 1, 2020 and on September 1st every five years thereafter the dividend will be re-set and fixed at a rate that equals the sum of the Government Of Canada Yield (GCAN5YR) plus 2.68%.
earlier question about the enb pref.......ticker is PF.G
The dividend is initially fixed until September 1, 2020. On September 1, 2020 and on September 1st every five years thereafter the dividend will be re-set and fixed at a rate that equals the sum of the Government Of Canada Yield (GCAN5YR) plus 2.68%.
Q: Good Morning Your opinion plse on what to do
A. Sell before it gets worse
B. Wait for a pick up then sell
C. Be patient wait for interest rates to rise over the next 4 yrs and maybe break even
I own 600 shares of each purchased at issue at 25$
A. Sell before it gets worse
B. Wait for a pick up then sell
C. Be patient wait for interest rates to rise over the next 4 yrs and maybe break even
I own 600 shares of each purchased at issue at 25$
Q: I am intrigued by the yield offered on these two Pfd's ...around 7 % with resets 4 & 5 years out at approx 4.8 % (C) & 5.4 % (G) plus 5 yr Cda Rate...Can you give me your opinion, please and thank you , as to the credit worthiness of these two pfd's ...also if you know there credit rating...and whether you would feel comfortable buying them at these levels with the view of holding them longer term...Many thanks
Q: I am interested in purchasing some bonds for fairly high yield with an approx. 3 year term. Your recommendations would be appreciated. and possibly some advise on the do's and dont's of holding them
Q: Is it advantageous to convert shares to series 6 by the end of January. What happens to the dividend if I just hold the stock long term.
Q: Further to my question regarding conversion of series 4 preferred shares, here is a recent comment from James Hymas, who is a pref shares guru: http://prefblog.com/?p=31665
"...If you wanted a true indication of the value of Dundee’s proposal to the Series 4 shareholders, then Dundee could have extended the term for those shareholders, that might be delusional enough to accept the deal. However, on that basis, I’m sure that it would be a small minority.
I agree. The proposal runs contrary to the usual method of term-extension for retractible preferred shares in Canada (which happens frequently, if not exclusively, with Split Share preferreds), in which there is almost always a “Special Retraction Right” allowing unhappy shareholders to exit their investment on the original terms.
That, I should hope, will be the objective of any beneficial shareholders who are in discussions with the company."
"...If you wanted a true indication of the value of Dundee’s proposal to the Series 4 shareholders, then Dundee could have extended the term for those shareholders, that might be delusional enough to accept the deal. However, on that basis, I’m sure that it would be a small minority.
I agree. The proposal runs contrary to the usual method of term-extension for retractible preferred shares in Canada (which happens frequently, if not exclusively, with Split Share preferreds), in which there is almost always a “Special Retraction Right” allowing unhappy shareholders to exit their investment on the original terms.
That, I should hope, will be the objective of any beneficial shareholders who are in discussions with the company."
Q: Please let us know your thoughts on "Principal At Risk" notes, specifically the CIBC Cdn. Banks Auto Callable notes recently offered.
The offering documents make them look very attractive with the potential for high single digit returns appearing to be almost a certainty.
Also any general comments on PPNs and "Principal at Risk" notes would be most appreciated.
The offering documents make them look very attractive with the potential for high single digit returns appearing to be almost a certainty.
Also any general comments on PPNs and "Principal at Risk" notes would be most appreciated.
Q: In a portfolio it is generally recommended that you avoid a weighting of more than 5% per equity. My question is as follows. Assuming your total portfolio is 1M. The split 60% equities and 40% fixed income. On the equity side this would imply 20 stocks at an average value of 30K per stock to meet the 5% guideline. On the fixed income side does the same rule apply or can you say 2 ETF's at 200K each. Say 200K of CBO and 200K of ZSU as an example . It brings the weighting to 20% each. Notwithstanding one could probably go to a product that gives you the entire bond spectrum and put 400K in one ETF. What is your opinion and recommendation.
Always appreciate your incite and all the best in the new year.
Always appreciate your incite and all the best in the new year.
Q: I own shares of Innergex Preferred series A Bought @ $ 22. I am giving the option to convert it to series B floating rate. Could I please have your opinion if I should convert or stay with series A. I was unable to find a Quote for the B series. Is this a new series that is created for that purpose? With only 3.4 Million shares of the series A outstanding, the conversion is subject to a minimum of 1 Million of A to B and become compulsory if less than 1 million shares remain outstanding of series A.
Thanks.
Thanks.
Q: Hello.
I've decided to change my investing strategy for 2016. I'm investing in a combination of Canadian perpetual and rate reset preferred shares and a small portfolio of yielding blue chip CDN stocks.
I'm having trouble finding resets that I actually like. There are a handful that seem to be bargains but most of them reset in the following 1 or 2 years. I'm looking for ways to hedge against rising interest rates should they increase over the next 5 years. Could you provide a strategy of a particular security that would accomplish this. I was thinking of owning a large position in a 1 to 5 yr term bond ETF or shorting one of the more liquid preferred ETF's as a hedge. Neither idea I like very much. Your thoughts???
I've decided to change my investing strategy for 2016. I'm investing in a combination of Canadian perpetual and rate reset preferred shares and a small portfolio of yielding blue chip CDN stocks.
I'm having trouble finding resets that I actually like. There are a handful that seem to be bargains but most of them reset in the following 1 or 2 years. I'm looking for ways to hedge against rising interest rates should they increase over the next 5 years. Could you provide a strategy of a particular security that would accomplish this. I was thinking of owning a large position in a 1 to 5 yr term bond ETF or shorting one of the more liquid preferred ETF's as a hedge. Neither idea I like very much. Your thoughts???
Q: Hi Peter
I own this floating Rate Preferred share issue which pays out a dividend which is based on 70% of the prime rate, it has taken a significant hit to say the least.
Recently it was downgraded to pfd-3 (high) i imagine because of debt risk,i hope this doesn't translate into Junk.
Could you comment on this Preferred share rating and the risk associated with it.
Thanks Gord
I own this floating Rate Preferred share issue which pays out a dividend which is based on 70% of the prime rate, it has taken a significant hit to say the least.
Recently it was downgraded to pfd-3 (high) i imagine because of debt risk,i hope this doesn't translate into Junk.
Could you comment on this Preferred share rating and the risk associated with it.
Thanks Gord
Q: These Dundee series 4 preferred shares tanked during the past week after Dundee announced plan to exchange them (redeemable in June 2016) to class 5 shares redeemable in June 2019) - http://dundeecorp.com/pdf/2015-12-10-QandA.pdf
The exchange incentives are clearly not sufficient considering the fact that these pref shares now have junk rating (re prefblog.com). What is the most concerning is that the company is now offering extra payment to shareholders who vote in favour of exchange (see Globe and Mail article here: https://t.co/HseE5rIvF8). I would never think something like this is even legal in Canada... What's your opinion of this?
The exchange incentives are clearly not sufficient considering the fact that these pref shares now have junk rating (re prefblog.com). What is the most concerning is that the company is now offering extra payment to shareholders who vote in favour of exchange (see Globe and Mail article here: https://t.co/HseE5rIvF8). I would never think something like this is even legal in Canada... What's your opinion of this?
Q: Hi Peter & team:
I own CF.PR.A and RON.PR.A (along with a couple of others) which are preferred the rates of which will be reset in March and September 2016, which explain in part why they down so much. These are part of the income portion of my portfolio, so I am still fine in staying in that space. My question is whether I should be worried about the credit risk of those two specific names. Would it make sense to switch to other beaten down resets with a better credit risk, such as BCE or FTS? If so, would you have suggestions. Thanks.
I own CF.PR.A and RON.PR.A (along with a couple of others) which are preferred the rates of which will be reset in March and September 2016, which explain in part why they down so much. These are part of the income portion of my portfolio, so I am still fine in staying in that space. My question is whether I should be worried about the credit risk of those two specific names. Would it make sense to switch to other beaten down resets with a better credit risk, such as BCE or FTS? If so, would you have suggestions. Thanks.
Q: Hi there
I know there have been some heavy losses this year in the preferred space, and new preferred shares are being issued at slightly more favorable terms but I really am perplexed by their short term movements in price given the market knows the direction for interest rates. I bought BAM.PR.M preferred in mid October for 16.50, in short order it was over $20 and now it is back to $16.10 today. I could see this in a market where the direction of interest rates are in some question but everyone know there is an interest rate coming in the states, we have know that for 1/2 a year other than the timing of it, and it is expected that rates will continue to go up. So nothing has really changed since September of 2015 yet preferred shares prices move around like crazy (I own others like Brookfield). I have owned preferred for quite a while but have never seem this volatility. Can you give me some ideas why at this time the prices move around so much and another question - are these solid investments for long terms income still and will prices recover somewhat?
Thanks
I know there have been some heavy losses this year in the preferred space, and new preferred shares are being issued at slightly more favorable terms but I really am perplexed by their short term movements in price given the market knows the direction for interest rates. I bought BAM.PR.M preferred in mid October for 16.50, in short order it was over $20 and now it is back to $16.10 today. I could see this in a market where the direction of interest rates are in some question but everyone know there is an interest rate coming in the states, we have know that for 1/2 a year other than the timing of it, and it is expected that rates will continue to go up. So nothing has really changed since September of 2015 yet preferred shares prices move around like crazy (I own others like Brookfield). I have owned preferred for quite a while but have never seem this volatility. Can you give me some ideas why at this time the prices move around so much and another question - are these solid investments for long terms income still and will prices recover somewhat?
Thanks
Q: hi experts; if they get a sale what would be the possible out come be to the debentures. thanks brian