2040 Bonds? There are lots of uncertainties over 30 years in the technology space. The good thing about them is that if you don’t intend to hold them to maturity, they are liquid and you can sell them into the market. For the long end of the curve, he prefers companies that could be protected so he can make sure he gets his coupons and capital back.

Preferreds. There are cheaper blue chips such as CIBC (CM-T).

Feb 2016 bonds. Safe? Trading in the low $70’s in the market so you’ve already lost a lot of money. Fundamentals of the business are not going well. Looking at the different aspects, they won’t run out of cash for the next few years. You might as well keep them.

US High Yield Bond Index Fund. Performing poorly because of the credit risks in the uncertainties of the market. Default rates haven’t moved up yet but the market is pricing higher default rates down the road.

4.1% due Nov 3/15. With what is happening in the market and that financials have under preformed a lot, this one is trading from the spread and almost back to where it was during the crisis.

3.18% due Nov 2/15. Financials under performing. (Subordinated, not the seniors.) Cdn banks have very strong footing. They have the option to roll over for another 5 years.

6.4% due Nov 23/39. Largest P & C company in Canada. Very fragmented industry. Very strong underwriters. Recent acquisition makes the bond safe and attractive.