Mark Wisniewski

NAV Canada Bonds. Basically an infrastructure play. Very good structure. Fairly low yield but very dependable and a good bond. AA

5- Year Quebec Hydro strip bond. Hasn't benefited from the real interest rate move that has happened in the 30-year or 10-year. Over time, it should do fine.

4.079% bond due Aug 20/15. Raised a lot of capital and too big to fail. Come under a lot of pressure because of their MCCSR ratios and market has punished them. Very sensitive to interest-rate and equity market moves. If nothing happens economically, you get paid your coupon and get your money back.

7.5% bond due Aug 19/19. One of the largest P & C operators in Canada with the significant presence in the US. $1 billion in net debt and $5.5 billion in receipts (?).

6.132% bond due Nov 30/16. Have one of the biggest energy assets. Pre-sell 70% of what they produce. Well run. BBB security, which is in investment grade.

(A Top Pick Aug 12/09. Up 11.85%.) Still a buy.

(A Top Pick Aug 12/09. Up 10.46%.) Still a buy.

(A Top Pick Aug 12/09. Up 8.86%.) Still a buy.

Real Return Bonds as a hedge against inflation? Terrific tools for this because the principal and interest rate increases or decreases as there are changes in CPI. Drawback is that the market is dominated by large institutions so are somewhat illiquid and technical in nature. As an asset class they are a little bit expensive. Play these in an ETF or an actively managed bond fund. Buy when inflation expectations are high and vice versa.

Rising interest rates effect on bond funds? Doesn’t expect any signs of inflation until 2011 so you are probably fine for the balance of the year. Things are probably going to get better in 2011 so you should then start to think about reducing your maturity (nothing long), de-emphasize governments, have some high quality corporate credit of around 5 years and also favour provincials.

5.995% bond maturing Dec 31/12. Likes insurance companies more than they did a while ago. With the stabilization of the equity markets (?) right now insurance companies are a lot better investment than they were. Very cheap.