STOCKCHASE

6.150

Yellow Media 7.75 % 3/2/2020. High investment grade, generating good free cash flow. Deleveraging and paying down debt. Converted from income trust in November without any fall out. Doesn’t have a problem with the equity. Biggest risk is a big slowdown in the economy.

2011-01-10

N/A

0.020

If ECB wasn’t there or Germany wasn’t there there wouldn’t be much demand for Spanish bonds, Market is telling you there you won’t get back 100 cents on the dollar. There is definitely going to be a hair cut. Most of investors in these countries are the banks. He would stay out of Europe until it settles down.

2011-01-10

BUY

0.020

Saw 5.7% bonds: Good franchise in the west. Change in CEO is good for bonds. Making money and executing and drama doesn’t’ concern him.

2011-01-10

TOP PICK

0.020

Cara Operations: 9.15% due 12/01/2015. Widely known for Swiss Chalet and milestones, Kelsey’s, Montana’s. Biggest risk is downturn in restaurants.

2011-01-10

PAST TOP PICK

Claymore 1-5 yr Ladder Corp Bond ETF

0.020

(Top Pick Dec 29/09, Up 6.53%) Case New Holland FRN 12/15/12

2011-01-10

BUY

CASH

0.010

Bonds will out perform cash. Cash – 1%, bonds 5-6% or more. Bonds are better than cash right now.

2011-01-10

DON'T BUY

CBO-T

20.390

If rates gradually rise in the short term, then this fund will suffer. He thinks rates will rise modestly over this year. The coupon may not be enough to offset the loss in capital. The market expects 100 basis points be his firm expects somewhat (50-75) less.

2011-01-10

WEAK BUY

Claymore Advantage High Yield Bond ETF

CHB-T

20.800

Not a bad sector. A good place to be instead of cash or GICs

2011-01-10

DON'T BUY

BCE Inc.

BCE-T

33.340

05/01/2029 Strip Bonds. More risky because coupon is stripped. This is a risky bond.

2010-11-16

BUY

Brookfield Properties

BPO-T

17.360

Brookfield 5.25% 2018 or 5.14% 2020? He would go for the longer one.

2010-11-16

TOP PICK

CitiGroup

C-N

4.220

Citigroup Bonds: 5.16% 05/24/2027 Thinks they have gone through the worst. Very, very good turnaround. Not super liquid so it takes time to get into this position. Have a good franchise. Have proven they can cut costs – management is doing a good job.

2010-11-16

PAST TOP PICK

EnerCare Inc

ECI-T

6.230

(Top Pick Nov 17/09, Up 10.5% total return) Consumers Water Heater Bonds 6.75 4/30/2014. Sold to buy bonds further up the yield curve.

2010-11-16

WEAK BUY

Fortis Inc.

FTS-T

30.920

Bonds: Very solid utility. Power generation assets are highly regulated. Contracts in place for a very long length of time. A little bit rich as present because the extra spread over a government bond is not as good as he used to get.

2010-11-16

TOP PICK

Manulife Financial

MFC-T

15.230

Manulife Bonds: 7.405% 12/31/2019 They have gone through the worst. This bonds represents good value on the yield curve.

2010-11-16

PAST TOP PICK

National Bank of Canada

NA-T

65.090

(Top Pick Nov 17/09, Up 14% total Return) 6.4% 11/18/2019. Solid utility, still owns it.

2010-11-16

PAST TOP PICK

Transalta Corp

TA-T

20.500

(Top Pick Nov 17/09, Up 14% total Return) 6.4% 11/18/2019. Solid utility, still owns it.

2010-11-16

BUY

6.100

He owns 2020 bonds. It’s a fairly valued credit.

2010-11-16

N/A

0.020

Not a lot has changed since 2009 except overnight bank rates. The Canadian yield curve has rallied. There is not really any value at the short end and the risk is too high. At the short end, rates are as low as they are going to go. Prefers corporate bonds. Investment grade bonds are very attractive. Ireland or Greek credit problems will cause volatility.

2010-11-16

TOP PICK

0.020

Aeroplan Bonds: 6.95% 01/26/2017 The improving economic theme and the Aeroplan card attached to purchases. Broad customer base, deep penetration. Not all miles get redeemed (over 20%). Good cash flow, modest debt, and good franchise, higher income individuals.

2010-11-16

BUY

0.020

Foreign Debt: If he wanted it he would stick to high quality debt such as Australia or New Zealand.

2010-11-16

BUY

iShares DEX Universe Bond ETF

0.020

Navigation Canada Bonds. Related to airports. Monopoly on managing airport landing, gate fees, etc. Regulated business with strong cash flow. You wont get a lot of spread comported to provincial.

2010-11-16

WEAK BUY

XBB-T

29.920

Tracks the Canadian Bond universe. If you are a passive investor and want exposure to the bond market, it is not a bad place to invest, however the risk is that you are going to get the return of the bond index. He thinks you want to get more than the index. Return is dragged down by very short term bonds that don’t have much upside potential.

2010-11-16

DON'T BUY

Bell Aliant

BA-T

26.850

30-Year Bonds 6.25%. Doesn’t trust the company. The credit is ok. Would prefer something in the middle of the yield curve.

2010-11-16

DON'T BUY

Bombardier Inc (B)

BBD.B-T

4.430

High Yield Bond so there is a little more risk attached to them. BB rated indicating the cash flows are volatile and uncertain. The bad news today certainly didn't help them. Expect the aerospace sector is going to be very challenging over the next couple of years. Rail side would be little more bullish. Not too big to fail.

2010-07-19

PAST TOP PICK

Brookfield Properties

BPO-T

15.090

(A Top Pick July 21/09. Up 17%.) 8.95% bond maturing 6/6/14. Yielding about 7%. Excellent management who can weather the storms. Still a Buy.

2010-07-19

HOLD

Fairfax Financial

FFH-T

417.350

One of the few financials that weathered the storm. Made a lot of money on the credit default swaps in the 08/09 mortgage meltdown. Bonds are a little higher on the risk scale and rated in the BB area, BBB splits. Fairly good yield but keep a close eye on them.

2010-07-19

TOP PICK

Brookfield Renewable Energy

BEP.UN-T

20.200

5.84% Bond maturing Nov 5/36. Good management and they are in a very good space. Likes renewable power area. Most of their contracts are fixed and fairly long-term.

2010-07-19

PAST TOP PICK

Manulife Financial

MFC-T

14.790

(A Top Pick July 21/09. Up 17.6%.) Capital Trust II maturing 12/31/19. Hasn't been a great stock story, but typically what is good for bonds is not good for stocks.

2010-07-19

TOP PICK

53.630

4.93% Bond maturing July 16/25. A deposit note, which is right near the top of the capital structure. Very well run bank, well diversified and good balance sheet.

2010-07-19

HOLD

53.630

6.821% maturing June 30/49 and callable June 30/18. Will probably be called in 2018 because this is a Tier 1 capital structure. This is a high-quality credit.

2010-07-19

PAST TOP PICK

71.490

(A Top Pick July 21/09. Up 13%.) 4.779% bond due12/14/16. This is one of his favourite banks. Good balance sheet.

2010-07-19

TOP PICK

0.020

CHIP Mortgage Trust 4.49% bond maturing Aug 4/15. AAA rated. Essentially they take reverse mortgages and the collateral is the equity. Fairly low risk. Diversified across major centres across Canada.

2010-07-19

BUY

0.020

10 year Ontario provincial bonds at 4% yield. Ontario is a big issuer and will continue to be a big issuer because of its massive deficit but he can't see any default risks.

2010-07-19

Comment

0.020

Effect of a double dip recession in the US on high yield bonds? Typically high yield will be as volatile as equities so if there is a double dip scenario (he doesn't think so), generally high yields would suffer.

2010-07-19

Comment

iShares DEX Universe Bond ETF

0.020

Cdn Gov’t bond maturing 2029. Volatile but with rates where they are and the forecast for stable and perhaps declining long rates, they may appreciate further.

2010-07-19

Comment

XBB-T

29.690

Cdn Bond Market ETF. Not expecting interest rates to rise significantly next year but bond market has already priced this in. This ETF is up about 4% this year but doesn't expect the bond index to rally more than 1%-2% in the next 6 months.

2010-07-19

Comment

iShares DEX Short Term Bond

XSB-T

29.070

Short Bond Index ETF. Not expecting interest rates to rise significantly next year but the bond market has already priced this in

2010-07-19

PAST TOP PICK

Canadian Imperial Bank of Commerce

CM-T

71.000

9.976% bonds maturing 6/30/19 (Top Pick Jun 2/09, Up 22.14%)

2010-06-07

PAST TOP PICK

Manulife Financial

MFC-T

16.930

4.896% bonds maturing 6/2/14. (Top Pick Jun 2/09, Up 9.19%) Recently sold.

2010-06-07

TOP PICK

Transalta Corp

TA-T

20.700

6.4% 2019 5.95%, slightly less yielding but more traction because of slightly longer term. Good cash generator. Company doing very well. Keep an eye on cap X.

2010-06-07

BUY

6.120

Yellow pages: 5.25% 2015. Comfortable with the name. Good profit margin. Customer has already made the transition from the paper onto the web site. No problem with the credit.

2010-06-07

N/A

0.020

This is a good time for bonds. It’s a volatile time, but a good time. A good time to put new money to work. US Financial space is good. Tread carefully for the below investment grade. If we saw a sustained dip in he housing market and we saw GDP dip he would be more concerned about a double dip. European restraint is going to cause a restraint in growth in N.A. Should be 2/3rds in corporate bonds vs. government bonds.

2010-06-07

Comment

0.020

Not such a good place for bonds with maturity less than 5 years. Mortgage rates wont fall much more. You wont see a significant drop in mortgage rates from here.

2010-06-07

BUY

0.020

Strip Bonds: Don’t mind the provincial space but this is a long-term investment. There is a lot of risk in that increased investment term. You will get some descent yields.`

2010-06-07

BUY

0.020

There will be more interest rate hikes, not at the rate the market expects. The market is already priced at the short tend. Growth will be low and inflation will go down. Royal and TD are good bonds. 10 years and out.

2010-06-07

Comment

0.020

Is it inflation or deflation? He is in the disinflation camp. Fixed income will perform well. Expects lower growth.

2010-06-07

TOP PICK

0.020

Merrill Lynch 5.29%. Low end of where he is putting money. Majority of problems are behind them. A strong franchise. 6.5% on this bond.

2010-06-07

Comment

0.020

Is it a good time to get into long-term Canadian bonds? He doesn’t have a problem but you need to watch them closely. Do your homework. Expecting a low inflation environment for the next year.

2010-06-07

Comment

Brookfield Asset Management (A)

0.020

The loonie may be back to parity by the end of the year.

2010-06-07

TOP PICK

Capital Power L.P.

CPA.UN-T (Dead)

15.450

5.95% 2036Doesn’t mind the very long term. Potential for capital appreciation.

2010-06-07

PAST TOP PICK

BAM.A-T

24.650

Bonds 8.95% (Top Pick Jun 2/09, Up 21.68%) Recently Sold.

2010-06-07

Comment

BCE Inc.

BCE-T

30.570

Strip bond due in 2026, yield of 6.2%. 16 years is fairly long and it is a zero coupon bond which means duration is also 16. If you don't need the cash flow, it is an OK longer-term hold.

2010-03-11

TOP PICK

CitiGroup

C-N

4.180

4.65% maturing 10/11/17. Investment grade A. Price is $86.43 yielding 7.18%. Wants to stay away from sharp bonds because rates could rise over the next year. On the other hand, doesn't have to go out 30 years for a 6%-7% yield.

2010-03-11

Comment

Emera Inc

EMA-T

24.080

4.83% due 2019 trading around par. Pretty stable cash flow and is rated BBB high so good from a credit perspective. 90% of revenue from Nova Scotia Power/Bangor Hydroelectric, which is pretty safe cash flow.

2010-03-11

PAST TOP PICK

Industrial-Alliance Life Ins

IAG-T

33.650

(A Top Pick Apr 1/09. Up 22.46%.) 8.25% 2014 bonds. Still likes.

2010-03-11

PAST TOP PICK

58.050

(A Top Pick Apr 1/09. Up 26.15%.) 6.821% June 30, 2018 bonds yielding about 8% to maturity. Still likes.

2010-03-11

PAST TOP PICK

Sunlife Financial

SLF-T

31.750

(A Top Pick Apr 1/09. Up 20.94%.) 7.9% March 31, 2014 bonds. Still likes.

2010-03-11

HOLD

6.000

Preferred bonds with 7% yield. Preferreds would rank a little below on the capital structure. Comfortable with this name.

2010-03-11

TOP PICK

0.020

Merrill Lynch Financial Assets CAN22A3 series, 4.88% coupon maturing 4/12/17. A collateralized mortgage-backed security rated AAA. Assets are all Canadian.

2010-03-11

TOP PICK

0.020

Aeroplan 6.95% maturing 1/26/17. As the economy recovers and people spend and travel, there will be more revenues coming in. Fairly good yield for a not very long duration.

2010-03-11

Comment

0.020

Bank perpetual preferreds. Paying over 5% but if interest rates go up will the banks call these? As interest rates rise, bonds and preferreds will get hurt, especially perpetuals. Generally, the banks do not call these.

2010-03-11

Comment

0.020

US or Canadian corporate bonds? He would prefer to the Canadian over the US. Doesn't like the currency risk. Also, Canadian corporate balance sheets are generally in better shape. Growth prospects for Canada is probably better.

2010-03-11

Comment

0.020

City of Winnipeg bonds Feb 11/13 yielding 9.375%. Credit risk is pretty close to zero. Between now and 2013, it will go from $118-$100. So every year you lose approximately $6 in capital. To offset that you are getting a huge coupon.

2010-03-11

Comment

iShares DEX Universe Bond ETF

0.020

Bank preferred shares as an alternative to GICs? The preferreds would be a better alternative. Credit risk is slightly higher but not much. They won't always be at $.25 on the $1 so will be more volatile. You may have figured out at quite a discount depending on market conditions,

2010-03-11

DON'T BUY

XBB-T

29.690

Doesn't like this because you are buying the index and if you believe rates are going to rise, you want an actively managed portfolio. You don't want to hold anything in the 1-5 year area, which make up almost half this index.

2010-03-11

TOP PICK

Altagas Ltd

ALA-T

18.760

6.94% bond maturing June 29/16. 6.3% yield. Holding the bond until maturity would not be a problem. Likes the energy space and feels gas is undervalued. Good cash flow and they don't have to issue a lot of debt. If he saw 150 basis point move in the next year or two he might look at lightening up.

2009-12-29

PAST TOP PICK

Bank of Montreal

BMO-T

55.300

(A Top Pick Jan 27/09. Up 33.58%.) Capital Trust II, Dec/17 @ 10.22%. Still likes.

2009-12-29

TOP PICK

Brookfield Renewable Energy

BEP.UN-T

19.290

6.132% bond maturing Nov 30/16. Likes the 5 to 10-year area of the yield curve so comfortable holding it until maturity. Good yield of just under 6%. BBB grade. In the right space of renewable energy. If he gets 100 basis points of tightening in the spread compression he would likely Sell.

2009-12-29

PAST TOP PICK

Shoppers Drug Mart Corp

SC-T

44.650

(A Top Pick Jan 27/09. Up 9.62%.) January/12 @ 4.8%. Still likes.

2009-12-29

PAST TOP PICK

65.400

(A Top Pick Jan 27/09. Up 36.69%.) Capital Trust IV, June/19 @ 9.52%. Still likes.

2009-12-29

Comment

5.350

Bonds. These are rated BBB Low. Biggest risk in the short-term would be refinancing risk or a decline in customers coming back.

2009-12-29

Comment

0.020

Strip Bonds. Coupons are stripped so you only have the cash at a future date. Good in a portfolio where you want some longer-term duration as they normally have a longer term than an average bond.

2009-12-29

DON'T BUY

0.020

Canada 2% 2014 Bond. Only yields about 2.8%-2.9%. If you have a low risk tolerance, it is probably an okay security. He would prefer corporate bonds.

2009-12-29

Comment

0.020

When to sell a bond? Before he buys a bond, he sets a target price to exit out of the position. E.g. if he buys a government bond with a 4% yield and he thinks rates are going to drop 25 basis points, when it gets to those levels he will start exiting. For corporate bonds, if this spreads narrow significantly on a short-term basis, he would probably sell it a bit ahead of time.

2009-12-29

Comment

0.020

Gold. Decent play as he thinks the US$ is going to be weak, which will cause the price of gold to go up. Any hiccups or downdrafts in the equity market could cause gold to appreciate.

2009-12-29

BUY

0.020

Canada Housing Trust 1 3.75% maturing 2020. Good holding for a Tax-Free Savings account? Yes because all the income is taxable and this is not too long of a holding. Better than having money in a bank.

2009-12-29

TOP PICK

iUnits Real Return Bond ETF

0.020

Case New Holland 6.15% maturing Dec 15/12. This will reset at CEDOR (Canadian Deposit Overnight Rate) every month plus 575, which is currently at around 40 basis points. Likes this is a hedge because of its floating-rate.

2009-12-29

DON'T BUY

XRB-T

20.400

Real Return Bond ETF. A lot of the return this year has come from inflation expectations but he doesn't think inflation will materialize. There is not a great supply of these bonds and they have been a good trade but he doesn't think it will be repeated in 2010.

2009-12-29

Comment

Claymore 1-5 yr Ladder Corp Bond ETF

CBO-T

20.700

1-5 Year Ladder Corp Bond ETF. Fairly short-term investment with all the securities being under 5 years. If there is a backup in interest rates because of inflation expectations, there could be a setback in price but risk would be fairly low so doesn't see a problem for the short-term.

2009-12-29

Comment

BCE Inc.

BCE-T

27.210

Strip bonds. Q: When should they get to Par since the company is doing okay? A: Zero discount bonds are issued at a deep discount when bonds are actually stripped so all you are really buying is a cash flow out in the future. Without knowing terms, you have to hold a while before getting back to par.

2009-11-17

PAST TOP PICK

Bank of Montreal

BMO-T

52.950

(A Top Pick Jan 27/09. Up 32.57%.) Capital Trust II, Dec/17 @ 10.22%. Recently trimmed part of his position.

2009-11-17

TOP PICK

EnerCare Inc

ECI-T

3.650

6.75% bond maturing April 30/14. Yielding about 6%. Cash flow is based upon rental of water heaters, so a fairly safe utility type play. (Single A rated.) Had some balance sheet concerns recently, which is why it was downgraded. Still a solid investment grade.

2009-11-17

TOP PICK

National Bank of Canada

NA-T

61.000

7.447% bond maturing June 30/20. A Tier 1 debt. Fairly high yield right now of over 6%.

2009-11-17

PAST TOP PICK

Shoppers Drug Mart Corp

SC-T

43.150

(A Top Pick Jan 27/09. Up 9.5%.) January/12 @ 4.8%. Recently trimmed art of his position.

2009-11-17

TOP PICK

Transalta Corp

TA-T

21.120

6.4% bond maturing November 18/19. New issue. Likes the 7 to 13 part of the year curve.

2009-11-17

PARTIAL SELL

67.470

TD High Yield Bond Fund. High yield speculative grade bonds have had a tremendous run. If you own, it is probably time to take a bit off the table because you can get competitive yields in investment grade (AAA and above) with significantly less risk.

2009-11-17

PAST TOP PICK

67.470

(A Top Pick Jan 27/09. Up 32.76%.) Capital Trust IV, June/19 @ 9.52%. Recently trimmed part of his position.

2009-11-17

Comment

Trans Canada Corp

TRP-T

32.550

Bond or stock? Two different risks. Bond is going to be higher up in the capital structure and the stock will have a little more risk. If you are conservative, stick with the bond. If you want more growth and a 4.7% yield, go with the stock.

2009-11-17

Comment

0.020

Trading 10- year notes. Bullish on these right now. His duration is long but on a trading perspective, he backed up to 3.50 and it is currently south of 3.40. If it got to 3.25-3.20 that might be a place to let some go. Very difficult to short these instruments for the average investor.

2009-11-17

HOLD

0.020

Bank Tier 1 Capital Issues. He did a lot of these earlier in the year and continues to hold a lot of these. Still likes this space.

2009-11-17

SELL

0.020

Short Term Bonds. He would reduce exposure to the short and of the year curve, 1-5 year period. This is very rich. T-bills are 2.5 basis points and government bonds on the short end at 5 years 2.75 so there is not a lot of upside. He favours the 10-year part of the yield curve.

2009-11-17

DON'T BUY

BMO Short Term Provincial Bond ETF

0.020

Real Return Bonds. The coupons on these are based off the inflation rate. His view is that inflation is not a problem so this is probably not the best place to invest in fixed income assets right now.

2009-11-17

Comment

ZPS-T

15.110

Short Term Provincial Bond ETF. Safer than corporate and more zip than federal but not significantly so. He would still prefer the corporate side.

2009-11-17

TOP PICK

Canadian Imperial Bank of Commerce

CM-T

65.860

9.976% bond maturing June 30/19. Price is a bit expensive at $126 so it may not appeal to individual investors. A safer way than using the common stocks as it puts you higher up on the structure. In balanced portfolio he would use a different bank for the stocks.

2009-09-21

TOP PICK

General Electric

GE-N

16.760

GECC 5.68% bond maturing Sept 10/19. New issue this month. Likes the 7 to 12 year space. Very good credit at a AA high. Company has passed the worst part as far as their ability to fund in the market. If you have a little more risk profile and you want growth, you could buy the stock.

2009-09-21

PAST TOP PICK

General Electric

GE-N

16.760

(A Top Pick Oct 9/08. Up 8.61%.) GE CAPITAL CANADA FINANCE June 7, 2010. Sold this shorter-term holding in order to go into a longer-term bond.

2009-09-21

PAST TOP PICK