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Compiling comments that experts make about stocks while on public TV.

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Randy LeClair , Chief Investment Officer & Portfolio Manager

Portland Investment Counsel


Date Signal Chart Symbol Company Opinion Price
2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Bonds. Bond performance this year has generally been terrific. Doesn’t think any bond manager in Canada thought that we would see a 6.5% return year-to-date or a 7.6% return year-over-year. We were coming up with such a bad year last year with a small negative performance on the overall bond index with an even bigger negative return on preferred shares. There was a lot of fear, but we are really having a terrific year. He starts top down with a macro view and then starts getting into sectors and countries. Obviously the US is doing very well. Canada a little softer. Europe is still in a kind of quagmire. We are in the 4th quarter where we will eventually get into rate increases, which is usually danger for the bond market. It usually lasts only a short period of time, but it is the period of time that people remember and are most fearful of. Easy money has been made, so at this time you have to be really selective.


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2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Good time to purchase a European bond? Which type? Corporate, high-yield or government? Europe is a good place, but you have to be careful. When you’re talking about corporate or high-yield, it is a very different environment there than what is in North America. Financing tends to be through banks so there are a lot of bank issues. It might be best to play this through an ETF or an index. Sometimes it is better to take your time, work through an advisor and look for opportunities that make sense for your portfolio.


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2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Owns Government bonds. 20-25 years at 4%-4.5%. This would be subject to more volatility. The further you go out, the more volatility there is. However, the Government of Canada is a good solid credit. Surprised at the high interest rate, but this was perhaps purchased 30 years ago. A 10 year bond today would be around 2%.


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2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

T-bills, one year, 10 year, etc. are always quoted at current yield. What are the coupon rates and are they always set at the same rate? Coupon rates are not always set at the same rate. Usually bond managers are looking at yield to maturity. Each quarter, the Bank of Canada will issue new bonds, usually a 2, 5, 10 and 30 year bonds, or they may add to existing issues. There are approximately 50 existing issues being traded right now, and each day they get shorter and shorter. The 10 year bond you got last year is now a 9 year bond. As it comes down the yield curve, the coupon stays fixed. In order to make up for that yield differential, the price goes up. Sometimes they do quote current yield, which is basically just that coupon over the current price. This is not very accurate, so bond managers use a calculation called yield to maturity. This is the true yield that you should be using.


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2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Closed End Bond Funds. What are the risks in holding this fund until it winds up? You don’t see too many of these around, because there are usually pretty hefty fees on them, which makes it pretty tough to make any money.


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2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Building a 10 year ladder. With most bonds selling at a premium, won’t this result in capital losses? A ladder is a passive strategy and not a bad way to go. All the bonds now have a premium. They were issued with a fixed coupon, rates have come down and the price of the bond is at a premium. As a bond manager, he looks at “yield to maturity” and takes a little bit off the coupon that you would be getting and this does shrink the yield. He would do it with corporate bonds rather than government, or perhaps mixed, when they are at a premium. A better way to do it would be through a fund or an ETF, instead of doing a ladder.


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2014-09-08 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Convertible Bond Fund? Convertible bonds are kind of a mysterious animal, especially in Canada. Looks like a bond in every way, but at some point there is a conversion feature. Usually, as the underlying stock starts taking off, you can convert to the stock. Usually it is weaker companies, weaker credits that issue these. A good way to play it would be through the iShares Convertible Bond Index ETF (CVD-T).


Price:
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2014-09-08 TOP PICK Must be logged in to use chart BMO.PR.T-T Bank Of Montreal (Preferred)

BMO Floating Rate Preferred Share Series 17 (BMO.PR.R-T) This is more of a defensive play. It can be Called at any time at $25. This came with the reset spread of 165, so you are getting a T-bill rate, which is around 1%, +165 basis points, 265 for basically a money market piece of paper. If rates go up, you are going to get more money.


Price:
$25.500
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
Yes
2014-09-08 PAST TOP PICK Must be logged in to use chart BRF.PR.E-T Brookfield Renewable Power Pref

(A Top Pick Sept 30/13. Up 14.64%.) This is for the longer term investor. Still likes this one. Feels it has a lot more to go.


Price:
$21.410
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FIXED INCOME
Bias:
SELECTIVE
Owned:
Yes
2014-09-08 COMMENT Must be logged in to use chart CSE.PR.A-T Capstone Infrastructure Corp.

Preferred A’s. Very low rated at P4. It’s also a very small issue. This is a lot more risky in the world of preferred shares. It is yielding quite nice, but there is a reason the yield is so high.


Price:
$19.650
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
No
2014-09-08 TOP PICK Must be logged in to use chart ENB.PF.C-T Enbridge Inc

Enbridge Inc. 4.40% Series 11 (ENB.PF.C-T) This company has quite a few issues outstanding. They started issuing a little bit higher rate and this one is fairly new. This is a top rated energy oil/gas pipeline company. It will possibly go to Reset in 2019. You are getting some protection at a 264 basis points over the Canada or the floating-rate. 


Price:
$25.110
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
Yes
2014-09-08 TOP PICK Must be logged in to use chart GWO.PR.S-T Great-West Lifeco

Great West Lifeco 5.25% Series S (GWO.PR.S-T) This was a recent issue. 5.25% from a good solid insurance company. Currently it is trading slightly over par. The $26 Call starts in 2019, and then goes all the way down to 2023. At $25 it could be redeemed by the company.


Price:
$25.320
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
Yes
2014-09-08 COMMENT Must be logged in to use chart RY.PR.A-T Royal Bank of Canada

Preferred Series AG, perpetual dates in 2016. This series is a perpetual preferred and is the longer term. These come up for redemption after, usually about 5 years. This one is 2016 for the 1st call and is $26. They were originally issued at $25. The bank usually doesn’t call these. Each year following that, the Call price of $26 goes down by $0.25 until it gets to $25 again. Usually at that point they will Call.


Price:
$25.400
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
Unknown
2014-09-08 PAST TOP PICK Must be logged in to use chart TD.PR.T-T TD Bank

(TD.PR.T-T) (A Top Pick Sept 30/13. Up 4.35%.) Has done a little bit better than expected. This is really defensive and more for the short-term investor.


Price:
$25.710
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
Yes
2014-09-08 COMMENT Must be logged in to use chart TRP.PR.B-T TransCanada Corp.

Preferred Series B. 5-year reset that expires in 2015. On these resets, in 5 years time, the company will either redeem it, or it will go to Reset and the company has the option to go fixed or floating at the predetermined reset spread over a 5-year Canada for the fixed portion, or that same spread over a T-Bill. It will run for another 5 years as a floater, and will probably float down. The reset spread that was 1st established 4 years ago was only 128 basis points. That is not really big on a five-year bond. He tends to shy away from these things.


Price:
$19.620
Subject:
FIXED INCOME
Bias:
SELECTIVE
Owned:
Unknown
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