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Looking for high yield conservative investment


Guest kawikaho

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Please define the word "conservative" and describe your investment horizon.

 

A treasury bond would be 99.999999% certain that you'll get your money when and as defined in the bond terms.  A CD might be 99.999% sure that you'll get all your money as planned.  Is that conservative?

 

There are corporate bonds out there that might be >90% but <100% of getting your money back as planned.  Is that good enough?

 

ORH.A probably has a risk of financial failure below 90%, but there is much uncertainty about the timing of getting your capital back.....you might end up underwater for a couple of years before the price snaps back in line.  Does this fit your time horizon?  Is 90% probability of getting your money back good enough?

 

SJ

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One of these might fit the bill: RY; BNS; TD; BMO; CM - all listed in New York as well.  Paying dividends above 6% in depressed Canadian dollars - should the CDn dollar rise your dividend will rise.  BMO is priced for a dividend cut which may not happen. 

I hold BMO, RY and TD and I am opportunistically picking up more of all of these, except CM.  I am also a customer of most of the above as are nearly all Canadians - oligopoly sactioned by our federal government. 

 

http://business.theglobeandmail.com/servlet/story/RTGAM.20090215.wrgseven16/BNStory/Business/home

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Guest kawikaho

I was thinking of a bond fund.  I just heard of a MUNI bond fund that is paying out near 6% called MHF.  Any other suggestions? 

 

SJ, don't you mean 10% risk of financial failure?

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