STOCKCHASE

55.100

(Top Pick Apr 13/09, Up 30.5%) Bank of Montreal Capital Trust 10.221% maturing Dec 31/18.

2010-02-22

N/A

0.020

How the governments rescued the global credit crisis has come home to roust as sovereign debt problems. This will be a test of the market’s willingness to assume risk. The risk appetite in Canada has returned to the bond market. Spreads are approaching near normal conditions.

2010-02-22

N/A

0.020

Canadian Banks. For some banks, the common is actually higher than the bond, which concerns her – is there a dividend cut coming (unlikely). It’s a case of how profitable the US banks will be with the new rules.

2010-02-22

N/A

0.020

Bond fund managers are looking to avoid those parts of the yield curve that will be hurt the worst with the anticipated interest rate increases.

2010-02-22

TOP PICK

0.020

Morgan Staley senior 2/23/2017, 4.9%. Almost 2% more than equivalent Canadian bond. They are a leader in the financial services market. Changes in the financial industry will actually be helpful to bond holders.

2010-02-22

N/A

0.020

Rates are rising in 10-year gov’t of Canada bonds. She likes the 7-10 year range. Corporate bonds offer 1-2% above these. A bond portfolio will look like the yield of the portfolio at the end of the year [I think she means no capital gain/loss]. Short-term bonds will likely decline.

2010-02-22

TOP PICK

0.020

GTAA 4.85% 6/1/2017. An infrastructure bond. They are not-for-profit and pass costs on to the airlines. This issue should see an improvement in their revenues if you believe the economy is bottoming and starting to improve.

2010-02-22

PAST TOP PICK

0.020

(Top Pick Apr 13/09, Up 8.4%) Wells Fargo 4.45% maturing Feb 28/11. Achieved the returns she expected and sold them.

2010-02-22

PAST TOP PICK

iShares DEX Short Term Bond

0.020

(Top Pick Apr 13/09, Up 9.4%) Government of Canada Real Return Bonds. 4% maturing Dec 1/31. . Achieved the returns she expected and sold them.

2010-02-22

SELL

XSB-T

29.320

Zero to negative total return this year expected.

2010-02-22

BUY

iShares Cdn Corp Bond ETF

XCB-T

20.470

Passive ETF. It is the broad corporate universe. More interest-rate sensitivity, but higher yield.

2010-02-22

BUY

Claymore 1-5 yr Ladder Corp Bond ETF

CBO-T

20.860

Passive ETF. Laddered 1-5 year bonds, equally. Lower yield and less interest rate sensitivity.

2010-02-22

TOP PICK

Claymore Advantage High Yield Bond ETF

CHB-T

19.720

This is down the risk spectrum so you get paid for taking on the risk (8-9%). This has a shorter term to maturity. They do not withhold tax. It’s an attractive asset space.

2010-02-22

PAST TOP PICK

Canadian Imperial Bank of Commerce

52.800

(A Top Pick April 13/09. Up 18.7%.) Still attractive but estimated return is in the high single digits rather than double digits.

2009-07-30

TOP PICK

CM-T

66.180

Tier-1 9.976% bond maturing June 30/19. Rated A and yielding about 300 basis points over Canada. This bank is working on back to basics reducing their wholesale risks.

2009-07-30

TOP PICK

Loblaw Companies Ltd

L-T

34.290

4.85% bond maturing May 8/14. High BBB yielding about 150 basis points over Canada. #1 grocer in Canada and are working very hard to maintain that position. Have a great platform to work from.

2009-07-30

TOP PICK

SNC-Lavalin Group Inc.

SNC-T

46.000

6.91% bond maturing July 3/19. High BBB yielding about 200 basis points over Canada. Play on infrastructure. Major player in construction/engineering. One of the top 10 worldwide.

2009-07-30

Comment

Toronto Dominion

TD-T

62.150

Extendable step up note starting at 3.6% interest and going to 6.35% over 10 years. (Aimed at retail investors who would rather not do a laddered bond portfolio.) She would figure out effective yield of the life of the bond is and compare it with just a straight 3, 5 and 10-year note in the marketplace to see if there is something more attractive out there. It would be difficult to sell them so it would be a Buy & Hold.

2009-07-30

PAST TOP PICK

Wells Fargo

WFC-N

24.870

(A Top Pick April 13/09. Up 5.8%.) Still likes this one and still has an attractive yield.

2009-07-30

Comment

0.020

Real return bonds. Great way to hedge against inflation. If you think inflation is rising, you should tilt more of their government bond weighting to these.

2009-07-30

PAST TOP PICK

iShares DEX Universe Bond ETF

0.020

(A Top Pick April 13/09. Up 1.6%.) Government of Canada Real Return Bonds. Bought this when inflation expectations were low and securities were priced at a discount. She rotated into government bonds.

2009-07-30

Comment

XBB-T

29.300

Government universe index. 30% corporate all investment-grade and 7% government with about a 3.5% yield. Consider going with a very strong fixed income active manager. (Such as our Expert.)

2009-07-30

BUY

iShares DEX Short Term Bond

XSB-T

29.150

Short Canada government bond index. 5-year Canada bond. Very low risk and very low yield at about 2%. Consider going with a very strong fixed income active manager. (Such as our Expert.)

2009-07-30

Comment

Pimco Corp Income Fund

PCN-N

11.210

An active portfolio manager. (She is also an active portfolio manager so this is her competition. Why not deal with her instead? Bill.)

2009-07-30

DON'T BUY

iShares Hi Yield Corp Bond ETF

HYG-N

83.100

An ETF that is designed to track the index of the US high yield market. The yield is anywhere from 9% to 10%. There is also currency risk attached to this because it is in US$. You have interest rate volatility and credit risk associated with it along with a currency risk. You are better off with a very strong fixed income active manager.

2009-07-30

DON'T BUY

iShares Hi Yield Corp Bond ETF

HYG-N

83.100

High yield bond market has been a very strong performer year-to-date but it is really coming off a very bad year in 2008. Up about 30% this year but were down 30%-35% last year. She would recommend an active high yield manager.

2009-07-30

PAST TOP PICK

iShares 20+ yr Tr. Bond ETF

44.490

(A Top Pick April 13/2009. Up 18%.) 10.221% maturing Dec 31/18. Considers this a Hold.

2009-06-17

HOLD

General Electric

GE-N

12.250

Bonds. They have worked very diligently at reducing their balance sheets risks. Solid long-term hold.

2009-06-17

BUY

Toronto Dominion

TD-T

56.210

June 2019 Capital Trust bonds. This is a tier 1 hybrid structure that the bank issued earlier this year. The bank is a very sound institution and she likes management and bringing their Tier 1 ratio very high. Bonds have performed extremely well. Attractively priced earlier this year but are now fairly priced. You are getting almost double what you get on a Canada bond.

2009-06-17

TOP PICK

TLT-N

91.840

iShares 20+ Year Treasury ETF. Likes government bond yields right now and this is a way to express it. US treasury market has suffered a dramatic increase in bond yields going from 2.5% last year to almost 5% last week. She believes we are still working through a weak economy. Bond yields are pricing in a V shape recovery and that bond yields will continue to trend lower throughout the summer.

2009-06-17

PAST TOP PICK

Wells Fargo

WFC-N

23.090

(A Top Pick April 13/2009. Up 4.75%.) 4.45% maturing Feb 29/11. Considers this a Hold.

2009-06-17

STRONG BUY

0.020

Alberta is raising $5 billion through a new issue of provincial bonds. This is a province that 3 years ago had absolutely no debt and was hit by falling commodity prices. Very strong province and the bonds will be very well received. They will become very expensive.

2009-06-17

Comment

0.020

Yellow Pages Group Holdings bonds. Rated BBB. They're in a high margin but high leverage business. Their model is to be fairly aggressive in leverage on their balance sheet. Their spread is relatively attractive for the BBB space. Yielding about 7.75%. There is a bit of refinancing risk in the next couple of years. Doesn't particularly care for this name.

2009-06-17

BUY

0.020

Canadian bank bonds. Credit fundamentals of these banks are very sound. Even though there has been a significant rally in these bonds there is still a great opportunity here. Average yield on a 10 year A rated bank bond is still between 6%-7%.

2009-06-17

Comment

0.020

If we have general price stability (deflation), fixed income assets perform very well. To take advantage of the very steep yield curve that is here, find bonds in the 7 to 10 year area of the curve. iUnits Cnd Bond Market ETF (XBB-T), which includes 70% government and 30% corporate with a yield of about 3.5% would be appropriate. If you want to just focus on corporates, the iShares Cnd Corp Bond ETF (XCB-T) has a yield of about 4.5%.

2009-06-17

HOLD

0.020

Greater Toronto Airport bonds. Greater Toronto Airport Authority collects landing fees, parking fees and concession fees. Have complete pricing authority. In the defensive sector of the bond market. Recently suffered because of concerns on Air Canada and declines in air traffic.

2009-06-17

TOP PICK

0.020

Province of Ontario 5% March/2014 bonds. Likes the value that the provincial sector is offering versus government and corporate. Yielding about 85 basis points over Canada's. Likes the risk characteristics, liquidity and the higher quality over corporate bond.

2009-06-17

TOP PICK

0.020

Province of Quebec 4.5% December 2019. Provincial scene in general looks very attractively priced compared to the corporate market. Yielding about 1.2% above 10 year Canada bonds

2009-06-17

PAST TOP PICK

0.020

(A Top Pick April 13/2009. Up 9%.) Government of Canada Real Return Bonds 4% maturing Dec 1/31. Had bought this more from a trading perspective and it has been sold.

2009-06-17

TOP PICK

0.020

Bank of Montreal Capital Trust 10.221% maturing Dec 31/18. 10-year hybrid security.

2009-04-13

TOP PICK

Wells Fargo

WFC-N

0.020

Wells Fargo 4.45% maturing Feb 28/11. These are 2 year deposit notes issued in Cdn$ and is guaranteed by their US parent. Yielding about 5.3%.

2009-04-13

BUY

0.020

TD 4.78% bond due Nov/16 and yielding 8.3%. A hybrid bond with fixed coupon payments for 10 years. At the end of this period, the company has the option of deferring the maturity. Trading at $.80 on the dollar reflecting that the coupon is not current. Fairly safe assumption that it will mature as anticipated.

2009-04-13

BUY

0.020

CIBC yielding between 9% and 10%. Recent issue. Hybrid security. Has a fixed coupon for the next 10 years with the possibility that it is not mature as anticipated and then it floats at a higher interest rate. This possibility is very remote.

2009-04-13

BUY

0.020

Shaw Communications 6.5% due June 2/14 yielding 5.8%. This is a BBB bond and for this company this is fairly solid. Generating nice free cash flow.

2009-04-13

TOP PICK