I have made some corrections to my initial TSX Exchange-traded debt spreadsheet. So far, this is turning out to be a great replacement for the old one that used to be at the old Financial Post website before it got taken down.
In terms of valuations, none of them appear to be errantly priced where I am tempted to dive in. The ones trading well under par are either visibly insolvent or marijuana companies. In either instance, purchasers of the debentures are likely to lose capital. The best of the worst of them appear to be DHX Media (TSX: DHX.DB) and Just Energy (TSX: JE.DB.C/D) but both of these businesses have issues which make the double-digit YTM warranted.
If your goal with these instruments is to make a relatively easy 5%, however, there are plenty of quality selections to be made, although I’d make the argument that for a non-tax sheltered account you would be much better off with preferred shares.
This spreadsheet is a wonderful public service for your readers Sacha. It is nice to see so many users logged into it at any given time. I don’t think it is a stretch to imagine that your work will result in some additional liquidity in the market.
I agree, and I like how you leave the expired/redeemed issues in place.
“It is nice to see so many users logged into it at any given time.”….Where do you see that?
On the upper-right of the sheet you can see the people that are using it (and if they are logged into their google accounts, who they are… or at least I can see myself!). I have no idea who is using it except in real-time (i.e. there are no logs that are stored that I can access in terms of usage).
Well I guess no one has ever been logged in when I have? I’ll try again when the markets open tomorrow.
Sacha,
Do you think the best of the worst DHX.DB are helped a decent amount by this rights issue?
I own some already so obviously think the credit is better post this announcement.
Without a doubt, you’re $60 million ahead. They still have a mountain of debt in relation to the cash they’re pulling in, but obviously the de-leveraging is a good thing for the debenture holders.