N/A

Corporate bonds. With the ECB announcing that they would be buying bonds from countries such as Italy and Spain and also the US Fed with QE 3, he could say riskier assets have performed very well and obviously high-yield had a very good ride. Short-term, he is taking profit right now. His long-term view is that you want to capture the credit spread that companies are paying vesters (?). Generally, corporations have strong balance sheets, good cash flows and they don’t have short-term maturities.

Unknown
DON'T BUY

This is the ultra-short long treasuries, which is basically a levered product. With this one you are betting against the Fed which recently announced they are going to be buying 10-30 year bonds until the economy improves. You will have a buyer against you for a long time, however if the economy succeeds, the yield should increase. You have the time against you so you have to be careful. Wait until you see growth rates really pick up in manufacturing, consumers and housing.

E.T.F.'s
N/A

How can we expect a Canadian Bond Index Fund to perform looking out to 2015 with interest rates staying low? Bernanke stated he would keep interest rates at 0 for the next 3-4 years and that he would try to keep the curve flat so it is hard to see rates rising significantly. The place to be in this scenario would probably be in credit.

Unknown
DON'T BUY
Yellow Pages Limited

Bonds. Based on the restructuring proposal, which will be settled on October 15, the bonds are trading at $.60 to the $1.00 and seem to be fully valued. If the restructuring does not occur, he could see more downside to it.

communications / media
BUY

10-year bond ladders. Do you agree with this strategy? A laddered portfolio makes sense. The key is to have a diversified portfolio to spread the risks.

Unknown
BUY

This is a short-term, 1 to 5 year corporate bond ETF. Relatively diversified. Sensitivity to interest rates remains high. Good investment.

E.T.F.'s
DON'T BUY

Regarding government bonds, the risk of rates being so low, he would try to avoid them.

Mining
COMMENT
Iamgold Corp

Just did an issue, 6.75%- Oct/20. Rated high-yield. Lending to gold producers, you want to make sure they have diversified mines as well as being low cost producers. This company could eventually get taken over.

precious metals
PAST TOP PICK
Goldman Sachs

(A Top Pick Sept 16/11. Up 11.79%.) From a regulatory standpoint, brokers cannot take on as much risk as before. From a debt standpoint this is good. He is taking profit right now but longer-term he is still comfortable with the name

investment companies / funds
PAST TOP PICK
Intact Financial

(A Top Pick Sept 16/11. Up 14.22%.) Still likes.

insurance
PAST TOP PICK
Royal Bank

(A Top Pick Sept 16/11. Up 4.28%.) Still likes.

banks
TOP PICK
Capital Power

4.6% bonds maturing 2015. This is a company that is relatively new to the bond market. Have grown a lot more than what the market was expecting. Current spreads of 250 basis points for a 3-year paper is a lot wider than its peer group. Expect these bonds to perform well over the next 3 years.

electrical utilities
TOP PICK

4.54% bonds maturing 2023. You are lending to a holding company but they are hard asset investments, diversified over North and South America and Europe. At a spread of 233 basis points for 10-years there is a decent pickup for the risk.

management / diversified
TOP PICK

5.95% bonds maturing 2036. He bought these at $.63 on the dollar. Feels the risk/reward is pretty good.

electrical utilities
N/A

Oil. There has been almost a $9 drop in 3 days, which historically is a heck of a move. He is feeling pretty confident that $90 WTI is going to hold. Feels that Saudi Arabia is concerned about demand destruction from too high oil production. They want a high oil price but they don’t want to kill off demand and bring on substitutes. Thinks their comfort price is at around $120-$125 Brent.

Unknown