STOCKCHASE

0.020

Will the US lose its global money standard? If you don't have the US$, what do you have? He doesn't think there is an alternative right now. Doesn't think gold is a viable alternative so in the interim he can't see it happening. Also, the US is still a huge proportion of global GDP.

2012-01-09

TOP PICK

iShares DEX Short Term Bond

0.020

Videotron 7.125% bond maturing January 15/20. Leading cable operator in Québec. Yields over 6.5%. This company is not investment-grade but are not that far off.

2012-01-09

Comment

Atlantic Power Corp.

ATP-T

14.540

6.5% debentures. Not really comfortable with their leverage. Their bonds sit at the bottom of the capital structure. Doesn't have any concern that they will be able to meet their interest payments or maturity of their bonds in a timely fashion but there will be a lot of volatility. Trade a little expensive for where they should.

2012-01-09

Comment

XSB-T

29.240

DEX Short Term Bond. Do you really get hurt with short-term bonds? You may see a bit of erosion in asset value but it will keep paying out distributions. Also you may underperform the broader market. A good component of any portfolio. Long bonds will outperform short bonds over the next 20 years.

2012-01-09

SELL

iUnits Real Return Bond ETF

XRB-T

25.710

iUnits Real Return Bond ETF. The real driver for real return bonds in the last year has been the fall in interest rates. This one is a basket of long bonds with the shortest being too 2021 out 2041 or 2046. Low coupon so have a higher sensitivity to interest rates, to the upside this year. If you own, try to reduce your exposure. Once long-term interest rates start to rise, these are going to sell off faster than anything else in the bond market.

2012-01-09

HOLD

Chorus Aviation Inc

CHR.B-T

3.160

9.5% Convertible Debenture maturing Dec 31/14. Not trading at a premium because of the conversion value but because of the coupon. He is not generally a fan of airline bonds but this one has a fairly low debt levels and good interest coverage.

2012-01-09

Comment

Claymore 1-5 yr Government Bond ETF

CLF-T

20.330

1-5 yr Government Bond ETF. This is a laddered strategy and he is big fan of the strategy but looking at the short end of the Canadian bond market right now, yields are very low. A lot of these bonds are actually trading at premiums. Value of ETF's is going to fall over the next few years because the bonds in them are all trading at premium. Still better to do this than a money market fund.

2012-01-09

TOP PICK

20.420

(A Top Pick Mar 21/11. Up 3.25%.) US High Yield Bond Index ETF. High yield did not perform as well as investment-grade last year but when you look at this over 9 months you have a lot of problems including tsunami in Japan and European credit crisis it's still eked out a mid-single digit return and he is fairly happy. Price-performance hasn't been great, but this is not about price-performance, it is about distribution. Thinks this will be one of the top performers over the next 6 months.

2012-01-09

Comment

Fairfax Financial

FFH-T

424.000

Debenture maturing May 25/21. Is this safe and will the bond capital be returned if the company fails? If you're looking for pure safety, this is not the bond for you. Likes the name, but it is a BBB rated security and also 10 years to maturity. There are no real concerns about default. Moderate risk.

2011-11-04

PAST TOP PICK

Sherritt International Corp.

12.790

(A Top Pick Sept 30/10. Up 5.91%.) Still likes.

2011-11-04

Comment

Just Energy Group

JE-T

10.820

Bond maturing September 2018? This is a convertible bond giving you the option of converting to common shares. Doesn't think there is a lot of option value in this bond so there is not a lot of equity upside to it. Likes this company but talk to your advisor about it.

2011-11-04

DON'T BUY

Superior Plus Corp

SPB-T

6.570

Convertible debenture maturing 2017. Is company at risk in defaulting on interest payments? (Joey owns some senior debt because of better protection.) These have sold off rather sharply. Company just announced a cut in its dividend on common stock, which would save them money but company has been downgraded further into junk territory. Could fall further if there are poor business conditions for them.

2011-11-04

BUY

S-T

5.780

7.75% bond maturing Oct 15/15 and yielding 6.75%. Holds this one personally. This is an investment-grade company. Operates in Madagascar and Cuba, which offers a lot of political risk. Not for every investor.

2011-11-04

Comment

Yellow Media Inc

YLO-T

0.360

Bonds maturing in 2013? In distress credit right now. Recently been downgraded to non-investment-grade. Outlook is negative. Reported 9% decrease in revenue and 14% decline in EBITDA. Not good numbers for bond or other investors but he believes it will have adequate liquidity to 2013.

2011-11-04

BUY

Uranium One Inc.

UUU-T

2.830

Bonds maturing December 31? 4.25% coupon and are trading at a discount. Will likely need financing to redeem this position which is why they are trading at a discount which is why they are trading at a discount. Thinks they will be able to tap the market at a reasonable rate.

2011-11-04

Comment

0.020

Bond markets. Canada is a net beneficiary from all the noise when looking at Cdn government bonds. Bond market has once again outperformed the stock market because of the flight to quality. However, it has put bond yields at levels that are less than exciting for the average investor.

2011-11-04

Comment

0.020

Good corporate US bond? There are thousands of them so it is difficult to pick one. Would be very cautious of the financials. You might look towards a Walmart, Microsoft, etc. that are very strongly rated. You won't get much interest on them given where short-term rates are in the US. (See Top Picks.)

2011-11-04

Comment

0.020

Outlook on bond funds and factors determining direction? Cdn bond markets have returned 7.4% year-to-date. If your fund has significantly lagged that you have to ask why. If you have a high MER on your funds that is something you have to be careful of. Would suggest you look at Universe Bond ETF (XBB-T).

2011-11-04

TOP PICK

Brookfield Asset Management (A)

0.020

Ontario provincial 4.4% bond maturing June 2/19. They're on track to reduce their deficit to get back to fiscal balance in the next 5 years.

2011-11-04

PAST TOP PICK

Bell Aliant

BA-T

27.450

(A Top Pick Sept 30/10. Up 5.84%.) Still likes.

2011-11-04

TOP PICK

BAM.A-T

28.620

Preferred “J” series 12, 5.45%. Has a dividend yield of about 4.25%, which is more like 5%-5.5% when you gross it up. This is for a more moderate risk investor.

2011-11-04

Comment

Claymore 1-5 yr Ladder Corp Bond ETF

CBO-T

20.450

1-5 yr Ladder Corp Bond ETF. Likes the idea of laddering. Performs very well over time. Distribution yield is 4% and a underlying yield is in the area of 2%. The 2% differential based on the bonds they are buying are premiums. That's where the market is. That premium will disappear over time so the asset value of the fund will drop over time. Still a great product but you will not stay there forever.

2011-11-04

BUY

Genworth MI Canada Inc.

MIC-T

23.700

5.68% bond maturing June 15/20? The only mortgage insurer outside of the government of Canada. Would definitely recommend this for a conservative investor. Looks pretty attractive.

2011-11-04

TOP PICK

20.420

(A Top Pick Sept 30/10. Up 8.2%.) US High Yield Bond Index Fund. Currently yielding 7.5%-8%. Cdn$ hedged giving you exposure to a broad asset class. Likes it right now because high yield is very cheap right now.

2011-11-04

PAST TOP PICK

JP Morgan Chase & Co

JPM-N

40.530

(Top Pick Jun 25/10, Up 3.9%) Floating rate, maturing February/12. Half increase is price gain rather than yield.

2011-06-06

TOP PICK

16.260

4.079% Aug 20, 2014 bonds. 3.5% yield currently. Senior debt. Short compared to others.

2011-06-06

BUY

Rogers Communcations (B)

RCI.B-T

36.500

Triple B rating. It’s becoming a pretty good story. The 2039 vs 2040 He’d buy the discounted one for a TFSA.

2011-06-06

Comment

Yellow Media Inc

YLO-T

3.590

An interesting situation with this one. They are moderate risk at best. Big spreads between bid and ask on the bonds. You are probably fine on 21013 or 2014 maturities but would be less comfortable going further. Would only play this company on short-term debt.

2011-06-06

N/A

0.020

Market: Bonds have come back into favour in the past few weeks. Bonds are a safe place to be. The inflation fear is drifting out of the market. It’s when, not if, they default in Greece.

2011-06-06

BUY

0.020

Canadian Bank Preferred Shares: One of the last places there is value is the fixed income market in banks. They are not low risk, but rather moderate risk. You have to watch the call features and the redemption features before you buy. 75% of market is owned by retail.

2011-06-06

Comment

0.020

When you buy a bond, you don’t have to look at the price over the term. When it matures you will get paid plus the interest.

2011-06-06

Comment

0.020

We are at an over all, long term low in interest rates. The 24-year government strip is guaranteed to rise over time.

2011-06-06

Comment

0.020

Real Return Bonds: Not a good time to buy them. It’s guaranteed, and that is worth something.

2011-06-06

BUY

0.020

Floating Rate bonds. A bit better than holding cash. Rates will go up over time so your rate will go up.

2011-06-06

PAST TOP PICK

Claymore Advantage High Yield Bond ETF

0.020

(Top Pick Jun 25/10, Up 12.6%) GE Capital Australia 5.75% 01/2011 10% of gain was Australian dollar against the Canadian.

2011-06-06

BUY

CHB-T

20.860

High yield (US) bond index. About 7%. It pays you return of capital. You get a much better after tax rate of return.

2011-06-06

TOP PICK

iSh JPMorgan USD Emerg Mk Bond

20.840

(Top Pick Jun 25/10, Up 13.79%) US high yield bonds, hedged Canadian $ to US. You are going for the distribution. Little under 7%. Not much downside risk.

2011-06-06

TOP PICK

XEB-T

20.560

New Launch. Always had it in the US, now in Canada. Hedged. About 5%. Investment grade bonds in emerging markets.

2011-06-06

TOP PICK

Cogeco Cable

CCA-T

42.880

Cogeco Cable Inc Bond 5.15% 16-Nov-2020. Exposure in Portugal is starting to turn around. Trading a little below par. Triple B Rating.

2011-03-21

TOP PICK

Laurentian Bank

LB-T

51.600

Laurentian Bank of Canada Fixed Floater 3.7% 2-Nov-2020, callable 2015: Fixed until 2015 and then become floating if not called. Never seen a Canadian bank not call a fixed floater in Canada. It’s pretty attractive compared to GICs.

2011-03-21

Comment

Loblaw Companies Ltd

L-T

38.820

Aug 2029 6.5%. Triple B, but he is comfortable with company. Is very leveraged to interest rates. If you think rates are going to rise, be very careful, if you think they will fall, it’s a great trade.

2011-03-21

PAST TOP PICK

Morgan Stanley

MS-N

27.790

(Top Pick May 3/10, Up 0.47%) Floating Rate Note 0.46% maturing Feb/23/12.

2011-03-21

DON'T BUY

Yellow Media Inc

YLO-T

5.400

Bonds: Triple B rated credit. One notch above junk. Yields are more in line with where high yield bonds trade. Don’t put a lot of money in that name. The business is challenged right now.

2011-03-21

N/A

0.020

Markets: It’s hard to get excited about 3%-10 year bonds. We are back to seeing some value in the emerging markets. Recent events in Japan have seen them get a little more attractive. If a foreign currency rises and the yield picks up, you get a double benefit. We are with a ‘risk on’ period, so treasuries have been sold and spreads have widened with other bonds.

2011-03-21

Comment

0.020

Stripped Bonds: Bond yield (coupon) is separated from the principle (residual) and sold separately. In bankruptcy, interest payments stop (worthless) and company funds are divided between the owners of the residuals. Coupon is more risky than residual.

2011-03-21

Comment

0.020

If economy does well and central bank raises rates, shouldn’t it be positive for corporate bonds?: No. 3 things impact corporate bond yield: Inflation, real interest rate, and credit spread. But if economy does well, interest rates should rise it is pretty negative for all bonds. Any rise in rates is not going to be good for corporate bonds.

2011-03-21

Comment

0.020

RRSP Portfolio of 30-year Canadian corporate bonds yielding 6.25%: Long bonds are a very important part of a life insurance company’s portfolio. 6.25% beats equity portfolios over the last 30 years. The portfolio value might take a hit at some point but then you get it all back at maturity.

2011-03-21

BUY

0.020

GICs: Are in fact the fixed income market. It is just a matter of percentages. He suggests moving to a Bond ETF as a first step.

2011-03-21

Comment

0.020

Tier 1 Bonds: rate further down the ladder. With Canadian banks you don’t get too concerned. With European banks we have seen some converted into stock. 10 years and less they will likely get called at their first possible call date but longer out they will probably get called early.

2011-03-21

Comment

Claymore 1-5 yr Ladder Corp Bond ETF

0.020

Bond ETFs: If you have the bonds outright you can hold to maturity and get all your interest and capital, but the ETF can go down. ETF is simpler to trade, and bonds outright are good for buy and hold.

2011-03-21

PAST TOP PICK

Deutsche Bank AG

DB-N

58.660

(Top Pick May 3/10, Up 12.10%) Deutsche Bank AG Sydney 6% due January 19/11. A big chunk o the return was the increased value of the Australian $.

2011-03-21

BUY

CBO-T

20.400

A good long-term hold. Only hold short-term securities. Is dropping because as high yield bonds mature, the asset value of the fund drops.

2011-03-21

TOP PICK

21.070

(Top Pick May 3/10, Up 8.71%) US High Yield Bonds, no exposure to currency. Yield about 7.5%. Close to long term average.

2011-03-21

Comment

BCE Inc.

BCE-T

34.710

May 1/29 Strip Bonds. Great for RSP account and Bell is a triple B credit, so moderate risk. As a 20-year security, the price volatility will be very high. 1% move in rates could see this move 18%-19% in price. In case of a leveraged buyout, there is a real risk that BCE would no longer be investment grade but become a high yield company. If Bell went into default, your bond would be worth zero. A lot of risks investing in Bell strips.

2010-11-30

TOP PICK

Laurentian Bank

LB-T

45.700

3.7% bond due 11/02/20 and callable in 2015. (Fixed Floater) If Laurentian bank doesn’t call it, it becomes a floating rate note at overnight rates plus 160 basis points. Highly likely they won’t call it so look at as a piece of paper yielding just over 4%. Laurentian is triple B but yield looks pretty attractive compared to other names in the 5-year space.

2010-11-30

PAST TOP PICK

Toronto Dominion

TD-T

74.690

(A Top Pick Jan 6/10. Up 1.45%.) Floating rate note maturing February 15/11.

2010-11-30

TOP PICK

Trans Canada Corp

TRP-T

36.200

Preferred 4.4% (TRP.PR.C). Yield of 3.97%, interest equivalent 5.43% because of the tax treatment on it. Utility preferreds are better than banks preferreds right now.

2010-11-30

Comment

0.020

5 year GIC Versus 5 year Canada Bond? GIC should yield more. If you are a Buy and Hold investor and investing less than $100,000, GIC is a slam-dunk. More active investors should look at the Canada’s that are more easily traded.

2010-11-30

Comment

0.020

Yield Curve. Looking at this today, 5-year area is a little bit expensive and 2-year and 10-year probably offer more value. That is the government curve. In corporates you get more value and the curve gets very steep in the 5 to 10 year area, which is what he would recommend.

2010-11-30

Comment

Claymore 1-5 yr Government Bond ETF

0.020

5-year laddered or 5-year laddered government/provincial bond ETF? A little more yield on GICs but you give that up on liquidity. He would recommend you use both and build your own ladder.

2010-11-30

Comment

CLF-T

20.240

1-5 yr govt bond ETF. A laddered bond product and one of his favourites. It’s all government and short term. Try not to watch distribution yield (distribution divided by price), which is never quite accurate as the bonds are trading at big premiums, which means (?) falls over time. You have to look at yield to maturity. Good holding but very conservative and very low yielding.

2010-11-30

PAST TOP PICK

SPDR High Yield Bond E.T.F.

JNK-N

39.820

(A Top Pick Jan 6/10. Up 8.6%.) High Yield Bond ETF.

2010-11-30

PAST TOP PICK

Morgan Stanley Emerging Markets Domestic Debt

EDD-N

16.390

(A Top Pick Jan 6/10. Up 23.17%.) Emerging Markets Domestic Debt including Brazil, Mexico, South Africa, etc.

2010-11-30

TOP PICK

20.280

US High Yield Bond Index Fund ETF. Hedged which takes out currency risk. High yield offers relative value over time. Yield over government currently is still above average and credit quality is doing very well.

2010-11-30

Comment

SPDR Intl Corp Bond ETF

IBND-N

31.750

Corporates are where you want to be in the bond market but this one is primarily in European corporations so you have some Europe risks including financial institutions. Probably why it is yielding more than a US or Cdn corporate bond fund.

2010-11-30

HOLD

BCE Inc.

BCE-T

33.480

10% strip maturing 2024. These strip bonds always go up providing a company doesn't default. High yielding securities.

2010-09-30

DON'T BUY

Enbridge

ENB-T

53.890

2020/2021 4% bonds. Company is a very good solid single A credit. Comparing their yield to some other companies in the space, they are a little expensive.

2010-09-30

HOLD

12.980

Bonds callable February 16/11 and due 2016? Feels this will definitely be called in 2011.

2010-09-30

TOP PICK

12.980

4.079% bond due August 20/15. Trades relatively cheap compared to the banks. Getting 3.75%-3.85% yield giving you about 1% more than a GIC or bank senior deposit note.

2010-09-30

Comment

0.020

Canadian Bank Tier 1 Bonds and the call feature? Bonds can be called on a change in regulatory or tax regime. With the coming change in taxes, there is a risk these could be called early at par.

2010-09-30

SELL

0.020

Greater Toronto Airport bond due 2027 paying 6.45%. Trading pretty expensively right now so might be an opportunity to take some profits.

2010-09-30

SELL

0.020

Real Return Bonds. Taxes a factor when determining inflation rate? You face taxation every year on implied increase in value on your bonds based on a change in inflation. He recommends these for tax-exempt accounts only. Right now they are very expensive.

2010-09-30

PAST TOP PICK

iShares Cdn Corp Bond ETF

0.020

(A Top Pick Oct 19/09. Up 1.86%.) Government of Canada 1.25% Due Dec/11.

2010-09-30

TOP PICK

Bell Aliant

BA-T

25.870

4.37% bond due September 13/17. Gives a little over 4% yield.

2010-09-30

BUY

XCB-T

20.930

Cdn Corp Bond ETF. Probably provides best exposure to Canadian corporations. Probably yielding 3%-3.5%. Holds everything from 1 year to 30-year bonds. You could also look at some of the US ETF’s such as iShares Corporate Bond ETF (LQD-N) where you could do a little bit better.

2010-09-30

PAST TOP PICK

SPDR High Yield Bond E.T.F.

JNK-N

40.010

(A Top Pick Oct 19/09. Up 13.24%.) Still looks good.

2010-09-30

PAST TOP PICK

iShr JPMorgn

EMB-N

111.310

(A Top Pick Oct 19/09. Up 16.32%.)Emerging market credit spread.

2010-09-30

TOP PICK

Claymore Inverse 10 Yr Gov Bond

20.410

US High Yield Bond Index Fund. Thinks high yield, as an asset class, will outperform investment grade bonds over the next 12 months. Yields are in the area of 8% versus 3% or less in the overall bond market.

2010-09-30

DON'T BUY

CIB-T

19.250

Inverse 10 Yr Gov Bond ETF. Basically going short on 10-year Canada. His view on a 10-year total return basis is low. Returns will be below 2%-3% over the next 1-2 years. Shorting bonds costs money because you have to pay the coupons. Not a buy and hold strategy.

2010-09-30

TOP PICK

Fortis Inc.

FTS-T

28.360

Preferred series G, 5.25%. Very stable business. On the cusp of being “investment grade”, “non-investment grade”. More of a modest risk security. Has fixed coupons for the next 3 years at 5.25%. Looks cheap right now.

2010-08-12

BUY

12.790

7.768% Medium Term Note due 4/08/19? There is still AA rating on this company. This is a very strong, solid, investment grade rating. He would be very comfortable with this.

2010-08-12

TOP PICK

12.790

7.405% bond due 31/12/19.

2010-08-12

PAST TOP PICK

Toronto Dominion

TD-T

70.820

(A Top Pick June 24/09. Up 10.74%.) Bank rate reset preferred shares (TD.PR.A-T). Still likes.

2010-08-12

PAST TOP PICK

Telus Corp

T-T

41.620

(A Top Pick June 24/09. Up 9.33%.) 4.95% bond due May 15/14. Still likes.

2010-08-12

Comment

0.020

Global corporate bond funds? Corporate bonds have had a great run and you want to stay with them. Still the most attractive part of the bond market.

2010-08-12

Comment

0.020

Term deposits give you very limited returns. You may have to get out of your comfort zone and at least Buy GIC's and perhaps form a ladder or alternatively a government bond ladder.

2010-08-12

Comment

0.020

Canada Housing Trust bonds? These are fully guaranteed by the government of Canada. If you are a “Buy and Hold” investor, you want to have some money in these.

2010-08-12

Comment

0.020

Real Return Bonds as a long-term hold over 20 years? He would recommend a minimum of 5% in your portfolio. This is the only perfect guarantee you have in Canada of getting some absolute real return on your money.

2010-08-12

PAST TOP PICK

Claymore Advantage High Yield Bond ETF

0.020

(A Top Pick June 24/09. Up 11.35%.) City of Toronto 4.95% due June 27/18. Still likes.

2010-08-12

TOP PICK

CHB-T

19.870

High Yield Bond ETF. Unique structured product in that it returns because it is a total return swap in an underlying portfolio. Returns are either return of capital or capital gain, which is more tax efficient.

2010-08-12

BUY