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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: What are your thoughts on this preferred share. Would you expect an increase in the price
Read Answer Asked by Bruce on October 21, 2015
Q: Would this be a good buy for income. The dividend is about 6%. Under what scenario could I lose money. I need to protect my capital. Thanks Cathleen
Read Answer Asked by Cathleen on October 19, 2015
Q: What do you think of this as a bond substitute. Is the recent drop in price a concern or an opportunaty
Read Answer Asked by Roger on October 19, 2015
Q: I was looking at this preferred share innergex power 5.75% ser C perpetual price of $18.50 yield 7.77% and callable in jan18. Can you please explain the biggest risk with this type or security outside corporate risk ? Am i correct to assume that the yield of 7.7% is only until jan 2018 and the yield thereafter will be the terms of reset or is it a perpetual 7.7% ? Thank you

Read Answer Asked by Pierre on October 19, 2015
Q: May I have you opinion on preferred shares? Specifically I would like you opinion of
Royal Bank of Canada 3.6% Non-Cum. 5-Year Rate Reset First Pref., Series BD

Call/Reset Date: 24-May-2020
Call Price: $25.00
Terms of Reset: 5yr GoC Yld + 2.74%
Close Price (13-Oct-15): $18.46

Since this is considered to be Non-Viability Contingent Capital, I believe there may be a good chance that this will be called. At the current price, would it be worth buying for the fixed income.

Thank-you
Read Answer Asked by J Stephen on October 15, 2015
Q: This pref looks to offer a good yield (~6.4%) and a good capital gain (at current price) in 2018. Am I missing something? Thanks.
Read Answer Asked by David on October 12, 2015
Q: Can you explain what is "wrong" with this issue (very low and falling price) and why it is, or is not, a reasonable buy for income. I know it will reset at around 4 1/2% at present interest rate scenarios in 2019, but looks pretty good overall with a current yield of ~9.7%. Thanks.
Read Answer Asked by David on October 12, 2015
Q: Hi Guys,

I have a large loss with a Fairfax Financial preferred (FFH.PR.I).

I was thinking of selling it and then purchasing FFH.PR.G. I would be in almost the same position as if I kept the original preferred but I would have a large tax loss to use. I would lose 29 basis points on the new rate and the reset would be a couple of months earlier but I would gain on the selling of FFH.PR.I ($15 bid) and purchase of FFH.PR.G ($13.70 ask).

Your comments would be most appreciated on this move.

Regards
John
Read Answer Asked by John on October 08, 2015
Q: I am starting a new position in either AX.UN or AX.PR.G. It would seem the distribution is safer with the preferred, but there's more upside in the actual unit price of AX.UN. Is this accurate? Of the two, which one would you pick?
Read Answer Asked by kelsi on October 08, 2015
Q: Investing in preferred shares is a conundrum at present.Do you have any suggestions on investing in these products or should they
be avoided for other income products which offer less risk of capital loss? Are pref share ETFs worth the effort? Joe
Read Answer Asked by Joseph on October 08, 2015
Q: I was wondering if you could provide some insight on Westcoast Energy as a preferred share for income. I am looking to move away from some of my REITs and invest in something a little saver.
Read Answer Asked by Leigh on October 07, 2015
Q: I have just over 1% of my portfolio in a total of 3 pref. issues and would like to get up to 5% to take advantage of rate reset prices. Considering to add to TA.PR.H or buy ENB.pf.G or EMA.pr.F. What issue would you prefer or if you have another idea that would be helpful.
Read Answer Asked by Bryce on October 07, 2015
Q: Hi- this has been a horrible story for some time, but I noticed they did have improved results this summer . What are your thoughts on the stock at these levels and the risk/reward in buying common or the 7% conv. thanks
Read Answer Asked by Scott on October 06, 2015
Q: Good Morning,

I own debentures of CUS (CV) and S. They are as follows:

CANEXUS CORPORATION SER VI CONV UNSEC SUBORD DEBS 12/31/21 6.5000

SHERRITT INTERNATIONAL CORP SENIOR UNSECURED NOTES 11/15/18 8.0000

SHERRITT INTERNATIONAL CORP SR DEB 09/24/20 7.5000

The CUS is selling around $70 and the S's are around $60. I purchased all 3 of them at issue, so am down quite significantly.

I am concerned that they will still be liquid at maturity to pay par for the bonds.

Could you determine after looking at the balance sheets if you think they should be sold right away or held till maturity?

If you owned them in your own account, what actions would you take?

Thanks
Read Answer Asked by Sheldon on October 06, 2015
Q: Hello,
I am considering investing $5K in Guestlogix convertible bonds. They are trading at approximately 720 (per 1,000 bond). Can you let me if there is a good chance they will at least pay back at 505 or more? I know this is higher risk investment. To help you understand my risk tolerance ---I could stomach losing $2.5K but losing the whole $5K would upset me.
Read Answer Asked by Don on October 06, 2015
Q: hi; at 5 year maturity I take a floating rate 3 month T-bill now would be under .5% plus 2.5%,if the 2.5% on the $25 original price. if this is correct buying today would yield over 3% + floating rate in 4 years is this correct. thanks brian
Read Answer Asked by brian on October 02, 2015
Q: I am nervous about the markets between now and the end of the year because of the shorts from hedge funds and tax loss selling. Not to mention the possibility of a drastic change in our Federal Government. I am also shying away from bonds because of the threat of rising rates. I am largely in cash but am wondering if HPR would be considered a diversification from equities? Jeff
Read Answer Asked by Jeff on September 30, 2015
Q: hi peter

this new issue perpetual preferred is coming out at 5.25% this month... do you think this will be a good preferred share, many have been beaten up lately as their rates reset, do you think this will be different as the rate is fixed? the yield and safety seems enticing... thanks
Read Answer Asked by michael on September 25, 2015
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