Provincial Bonds

[cottonpicken]

This is worth a listen,couldn't talk relatives into gold 5 years ago,maybe they would be
more excepting of provincial bonds(not not ontarios though).

Even though i generally hate bonds,i wonder if there is a short term price trade on
these things?
Do you have an opinion Hopper or anyone?

http://watch.bnn.ca/#clip580503

[cottonpicken]

http://www.stockhouse.com/financialtools/sn_overview.aspx?qm_symbol=T.XGB

[Hopperbin]

Sorry I don't have much knowledge of gov't bonds or the fuss of investing in such low interest paying.

Now learning about shares with the ext. wt.

PVG.wt, total 12.5 million shares allows the owner to buy one Pretium share from Silver Standard for 12.5 per share. Expires april 8, 2013.

52 week high 1.85
52 week low .51
Currently down 6.48 percent today to 1.01. Seems like something for the gambling person.

[Hopperbin]

I have been watching the ylo shares lately. Noticed that the ylo.pr.a b c and d shares have an ex dividend date of Dec. 12 2011 paying close to 11 percent as of todays price if you own them shares for one day on that date. The common shares are taking more of a licking cause they have had their dividend eliminated.
For a company that is losing so much money they seem to be quite successful on winning awards lately, a new one just today, Grand prize at the Boomerang Awards what ever that is lol.
Chances are the prefered shares are propped up because of the dividend payable and will likely drop on or after Dec. 12, what do you think? Another one for the gambling man.

[Hopperbin]

I guess I would like someone to help me to understand bonds, take this one for example.

ylo.db.a

Montréal (Québec), July 8, 2010 – Yellow Pages Income Fund (the “Fund”) announced today that its subsidiary, Yellow Media Inc., has completed the closing of its previously announced public offering of $200 million aggregate principal amount of 6.25% convertible unsecured subordinated debentures (the “Convertible Debentures”). The Convertible Debentures pay interest semi-annually on April 1 and October 1 of each year commencing October 1, 2010. The Convertible Debentures have a maturity date of October 1, 2017 and are convertible, at the option of the holder, for trust units of the Fund at an exchange price of $8.00 per unit.

From what I understand is a ylo.db.a bond at 100 dollars per share were issued on oct 1 2010. They pay a fixed rate of 6.25 percent per year. So if you check this bond stock today it is worth 23.75 per share. I take it this bond if you invest at 23.75 per share now pays 26.35 percent yearly. Obviously this bond must hold a lot of risk as the bond holders are bailing out. Also I do not understand the conversion to a trust unit at 8 dollars per unit option at the maturity.

[cottonpicken]

My understanding is pretty simplistic also.

What your looking at i believe is a corporate bond
structure of a company that is trouble and that is
reflected in the yield,and at that rate the prospects
of default are huge.

A low yielding high quality bond can in fact jump
very high in price,i.e price and yield measure the
same thing inversely.

My thinking is a short term trade in saskatchewan
and alberta provincial bonds because the prospects
of default are so incredibly low the yield will go
down and the price will sky rocket as investors seek
to protect capital.

These would be provincial government bonds not
corporate,which makes wonder how easy it is going
to be for all of us to access capital.

Not that huge gobs of debt are good,but i know my
accessibility money seems near unending ,i cant
imagine what other farms have access to,this i
believe is a product of the current environment.

People worried about the big leap in rates,shouldn't
be,although a crash in interest rate related sectors
is real with or without rises,i.e major metropolitan
housing sectors,think the u.s model(how big of a
crash would have happened if the fed funds had
gone to 10%,that would have been biblical)

We have never been in a market who's bond market
is broken and manipulated.

Proper thinking could lead to great rewards like
Bass's 7000% percent reward buying insurance on
greeek debt at the right time.

Interesting times