Investment Q&A

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

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.

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

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

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

Q: Can I get your thoughts on PPL.PR.A? Is this a good save investment now that preferred shares have dropped back in price?

Q: Hi Peter and team,
We are considering selling common shares of Enbridge and purchasing preferred shares of Enbridge. We are up 34% in the common shares. The preferred market seems hated by everyone. The dividend yield is 5.91% and the dividend rate is 1.1% . We think the reset rate is June 2020.
What do you think of this strategy ? Thanks for your valued advise in the past and have a good weekend.

Q: hi experts; onr.db.b can be bought for 88% onr.db.c for 101% the conversion price is $1 more for b .and 2 years less to convert. is this why the different pricing. thanks brian

Q: I originally bought these preferred shares for income. I knew that there was a risk if interest rates moved up, but I never envisioned the volatility that this stock would have this past year. If I am still investing for income, do you see the current stock price and high yield as an opportunity to buy more shares to improve my yield in my portfolio?

Q: What do you think of the Emera convertible debt issue
Thank you for your perspective

Q: Hello...thanks again for your great support and advise...i have been looking at the zpr and cpd to take advantage of what looks like a movement in the canadian preferred stocks...could you please comment on these two or possibly a better north american etf that covers this area...i believe with increased interest rates these could possibly be a nice area to move fixed income allotment to ....

Q: I own Element EFN in several accounts since $12
I am a small business owner 66 years and still working.
I have cash in my company and some stock holdings and would
consider purchasing efn.pr.e for some income. now at 7.1%

Q: Please comment on the 2nd quarter, just released and the sustainability of the common and preferred dividends, in your view.

Q: I have pretty much gone from thinking I "understood" the investment risks of preferred shares to now a singular emotional thought of "I hate these pieces of $*@#. I am currently looking at a 25% capital loss on the CPD ETF with no end to the bleeding in sight. The yield can't ever come close to compensating for such a large capital loss. I had the apparently misguided belief that a preferred share ETF like CPD would have less volitility and not put my capital at as much risk as an equity. It would seem preferreds combine the worst elements of equities and bonds. My question is where did I go wrong and do you think I would be better off booking the loss and moving on to something where I won't spend so much emotional capital being ticked off. Thanks

Q: could you comment as to why so low, is it a buy

Q: correct me if i am wrong. has the monthly dividend been reduced. if so are you still holding for income. would this be a good entry point or will it go lower when tax loss selling takes hold. stephen

Q: What is your outlook on their preferred issues C, and D , and is it a hold or a sell at this time. Is this a case of be patient and collect the dividend and what would be a worst case scenario for Bombardier. thanks, jean

Q: Hi Peter & Team, additional question regarding preferred
XPF, CPD and ZPR are down 2.67%, 11.54% and 17.26% (12 months)
a) Why such variation?
b) Is it best to buy ZPR since it is down the most?
Thanks

Q: Hi Peter & team, what is your opinion on ZPR for income purposes in a RRIF portfolio? Looking for long term with at least 5% of total portfolio. Thanks

Q: Good Morning: I have been accumulating some preferred shares (both rate resets and perpetuals) now that they seem to be very out of favor. I am currently considering CU.PR.F or G. I'm wondering if you have any comments or insights in regard 1st, to the accumulation of preferreds (up to a maximum of 10% of the portfolio), and 2nd, in regard to these preferreds in particular. Many thanks.