Investment Q&A

Q: ARN has just announced that it proposes to exchange their debentures for stock at a price of $0.15/share. The company also states that debenture holders holding approximately 40% of the Debentures have executed a support agreement whereby they have agreed, subject to certain terms and conditions, to vote in favour of and support the Exchange (the "Support Agreement"). Under the terms of the Support Agreement, such Debentureholders will receive additional common shares representing approximately 5% of the new common shares in the capital of Arcan upon completion of the Exchange.
This appears to me that a certain group of securities holders are being treated differently than others holding the same security and is therefore unfair. I also wonder whether this is consistent with securities laws which generally are focussed on treating all securities holders on the same basis.
Can you comment on this and also whether you would tender to the offer.
Thanks

Q: Hi There
I'm trying to understand this rate reset, of which I hold a modest amount. Current price and yield is $17.6 and 6.7%. Reset date is March 2015. Reset rate is ~4% (2.7+1.3). New dividend will be ~$1 ie 5.7% yield on current price. Is it simply that this is the new yield value the market has put on this perpetual? If so, why the drop in a potential rising interest rate environment? Perhaps the credit risk has reduced.
Thanks as always.
David

Q: Good Afternoon
Will the following two securities be fine for tax-loss/rebuying purposes?

ta.pr.j and ta.pr.h

Thanks

Q: What do you think about the class-action suit against weq,about quarterly earnings lower than anticipated?I own the deb.
thank you
m.

Q: Hi Peter/Team I owen this transcanada pref. shares for some time and i wonder if it is worth holding it or sell it. thanks Jim!!!

Q: I am interested in your opinion relating to the safety and sustainability of the dividends on the company's preferred shares. The Preferred "F" shares reset in 2017 at + 317 basis points - thanks for your feedback

Q: Peter and Team,

Just a follow up on the question asked by another member just a bit earlier. You suggested CBO as a good ETF for corporate bonds.

Here are my questions:
1. If you buy a bond ETF, does the ETF price go down if interest rates go up or is it unaffected because the ETF manager will hold the bonds to maturity any way and get paid par?
2. Will this offer protection against rising rates (and maybe inflation?) due to the 1-year out maturities getting rolled into new 5-year maturities ever year?
3. Is this a better choice than owning a few bond positions outright along with a stock portfolio (assume diversification)?

Just as a comment, in my ideal world, I want to buy bonds that pay me back my money at maturity and give me yield along the way. I want to preserve capital with these choices and am not trying to hit a "home run."

Thanks!

Q: Your thoughts on this investment please and on Bombardier in general. I have held this for many years. Thanks

Q: Hi Team,
I am looking to buy shares of the Magnum Hunter preferreds. There are 3 series- C,D,E. I am relatively new to buying pref shares- is there a way to quickly assess the difference between series. Is there one you could recommend of the three? I plan to hold it for 3 years. Thank you

Q: Hi Peter and 5iResearch Group,
As you have noted that interest rates will likely remain low for sometime, would you recommend using ETFs for medium and/or long-term bond portfolio positions vs. purchasing individual bonds. Also, should both US and Cdn. bonds in each/either category be purchased? Thank you. Linda

Q: Good morning,

Husky Energy issued a 4.50% rate reset (3.13%)preferred this am- what is your opinion on these new shares?

Thank you
Brad

Q: Now that this bond has recovered, would you advise continuing to hold it or sell it. My portfolio is based on your growth model, and it represents about half my assets. I also have a pension that I live on as a retired person. Many thanks, Peter and 5i team!
Ellen

Q: I own the Vicwest convertible debenture. The conversion price will no longer be of any consequence after the takeover. Do you know what will happen to it once the takeover of Vicwest is complete?

Q: I bought Argent EN-B CV 6.5% 31 Dec. 18 I paid $9000 and it is down 39% since purchase. Will I still get all my money back at the maturity date? They are still paying the interest each quarter. I assume if they go bankrupt I won't but what if they stay solvent.
Many thanks, and I will keep recommending people to your site.
Sincerely, Al

Q: Would appreciate your opinion on the above two reset preferred, the yield to reset looks high to me for the risk on these preferred? Don't understand why?

Q: Gents,

I have room in the "speculative" part of my fixed income allocation and was considering the convertible debentures of CUS. I realize you do not like the common shares at the moment but how do you feel about the debt side?

It's a simple question with a difficult answer. Do you think CUS will have the resources to pay off the convertible debt in 2021?

Regards
John

Q: Hello 5i,
I will be building out the bond part of my portfolio in time. My thinking is to structure that part of the portfolio with BB- to BB+ bonds that have a time horizon of eight years max.

What do you think of this strategy?
Thanks,

Q: Are there any convertible debentures that you would recommend at this time?

Q: A portion of my overall portfolio is perpetual preferred shares (down 4.5%) and I am considering selling and replacing with rate-reset preferred shares. I would appreciate your comments on the two types of preferreds and your recommendation for 4 or 5 rate-resets. In addition to the BCE.PR, I currently hold BAM, GWO, MFC, and SLF preferreds.

Q: Hello;

I am wondering what your thoughts are on TA preferred shares. Most of them are well below par but offer a nice yield at these lower values. So, is there any chance they could return to par, rate re-set is in 2016 or this a value trap in light of company conditions of late?
Thanks for your opinion and great service!
Jerry