Investment Q&A

Q: Hi Peter & team, I have following prefered shares in cash account: BPO.PR.K, BPO.PR.T, HSE.PR.A, and CM.PR.E, BRF.PR.E,
REI.PR.C in registered account, could you tell me what type of
preferred share they are ?
Thank you. M.N

Q: I have two questions:

1. your outlook on US-based PFF

2. why do you thing PFF is close to an all-time high while canadian preferred ETFs like CPD and ZPR are ways below their prior highs

Many thanks

Q: Hi,

Besides the 31-Dec-18 4.5% Cineplex convertible debentures which have been mentioned on here before, does 5i have some other favourite convertible debenture issues that you could recommend?

Thank you.

Q: Hi 5i team, I'm presently holding these preferred's and would like your feedback on hold or sell and what to buy if a sell is recommended. ALA.PR.A, SJR.PR.A, BPO.PR.P, BNS.PR.A. I'm looking for stable income with small 'g' growth (if possible). Thanks

Q: I am considering ELF.PR.G as a short term income holding. Has a $25 call 17Oct2014, currently price at a discount. DBRS discontinued Credit Rating in 2006 on this company.
Can you comment on it's short term credit worthiness

Thank You
Ernie

Q: I CURRENTLY OWN PREFERRED CPX.PR.A. WILL THIS BE REDEEMED AT 25 ON DEC 31/15 OR WOULD IT BE REDEEMED AT MARKET ON THAT DATE

GREAT SERVICE
WAYNE

Q: Hi all,
I'm trying to understand what I conceive as price discrepancy between the atlantic power preferred shares and their convertible debentures. AZP.PR.B is a rate reset presently yielding 12.5% (17.5% after tax consideration) and the longest term (2019) debentures (atp.db.d) yields 13.92% to maturity. Is the 3.6% spread simply due to the added duration (preferreds could be reset indefinitely in theory) and the fact that they are lower down on the balance sheet. Or, is that fact these preferreds were originally issued by Epcor, and are really a held in subsidiary of Atlantic Power corporation. How would this effect the preferred shares in the event of a default.
Thanks again.
Emile

Q: I have a preferred share coming up to the reset date March 31 CCS.PR.D and it will reset to GOC 5 year ~1.46% + 5.21 bp. What will likely happen to the share price on this date? I will get my dividend for sure but the yield will drop hence will the share price drop, stay the same as current price or what?

Derek

Q: Dear Peter, In no hurry for a reply. I own a convertible Debenture with a maturity in 21014. It appears to be trading at the level of my purchase . What will take place at maturity? Will this bond just mature at Par or will the conversion be forced or does the debenture holder have an option?

Q: As a retired senior, would CPF.UN (Can 50 Preferred), or would CPD be better for part of the income percentage of my portfolio? I noticed on occasion you have mentioned individual preferred shares. Do you prefer individual preferred or a basket since they are difficult for the retail investor to understand them. I will look forward to your income portfolio.
Thank you. Shirley

Q: Thanks for the 4 rate-reset preferreds in response to David's inquiry. They look perfect for my needs. One question please. Is the rate reset the only option available to the issuers at reset day, or are there other options.

Q: Rate-reset Prefs
Hi there. Could you please give me, say, three that you like for income, ie. higher but"safe" yield, for a a well balanced retirement portfolio. Thanks as always.

Q: I am thinking about adding DCD.UN. I realize this is sort of a bond/equity. If you have info on this, I would appreciate your comments.
Thanks.

Q: Do you have any debenture recommendations? What do you think of AXL.DB?

Q: hi,

I have debentures of Argent energy - aet.db.- expiry June 2018 - Do you think I should hold them or just sell.

Thank you.

Q: Hi Peter/team I would like your opinion on TRP.PR.B is it worth holding .thanks for your great job!!! Jim

Q: Hi Peter could you tell me if there is difference in efn.pr.a and the new ipo efn.pr.c ?
Thx Stan

Q: We would like to invest in a preferred share. Can you recommend some of the best for us?

Thank you

Q: Hi Peter
I have been overweight stocks for some time, and while it may still a bit premature, for piece of mind I would like to increase my fixed income weighting to approx. 30%. My feeling is that over the next 2-3 years interest rates in the US will slowly trend higher, and likely even more slowly in Canada. With this in mind, my bias is to allocate towards shorter term corp bonds, REITS, and Preferred issues (recognizing that the latter two are more fixed income proxies more than true plays). For each of these sectors do you think I am best allocating exposure via ETF's (for example, VSC, ZRE and XPF), or do you think that there is a case to be made for buying best of breed individual issues in each class. Specifically in concerns with the ETF approach is that slightly higher rates over time may see a fall in the price of VSC negate all of the dividend benefit (whereas holding an individual bond to maturity will ensure I earn a return), while I understand that there may be inefficiencies within the Canadian Preferred market (pricing/liquidity) which mean that an ETF may not be the best approach here either. Your thoughts would be most welcome. Thanks.

Q: Would you agree that all things being equal lack of diversification and realtors commissions means owning a REIT is a better way to play real estate than investing directly in rental properties? Bearing in mind the long term advantage of 5:1 mortgage leverage it seems that things are not equal and the advantage is currently with rental properties over a time horizon of twenty years or more .

Do you know any REITs in Canada or the US that employ the same kind of leverage? This would be especially useful when investing in the US market, as maintaning a property far away is highly stressful.