GREY:WFREF - Post by User
Comment by
BlueCollar51on Aug 05, 2015 8:48am
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Post# 23989926
RE:RE:RE:Debentures outperformed as usual
RE:RE:RE:Debentures outperformed as usualwilwal wrote: I trade from two houses and both trade debs just like a stock.....although they nail you with much higher commissions.
I know of one major house that appears to not allow online trading of debs but a call to support and that particular trader found out how to do it. TD is probably the same. They may require a particular code, not sure but I would wager you can do it online without calling it in. Just give them a call at the trading desk and they'll probably be able to tell you how to do it.
One thing about Long Run Debentures is that unlike the Common Shares the potential upside is basically caped at face value. Convertible Debs. Generally trade like Bonds based on the Credit Quality and the Coupon Rate. The exception is when the “Conversion Feature” is in the money. Then they will trade like Equity. The conversion rate for LRE.DB is $7.40 (don’t hold your breath). The good news is that the coupon is fixed and you do get paid to wait.
FYI; I deal with TD Direct (Canada) and can trade TSX listed Convertible Debs. just like Stocks. $9.99 commission + accrued interest.
As Always; Do Your Own Due Diligence; It’s Your Money !!