GOLONG likes...The Financial Post reports in its Wednesday edition Dan Bastasic at IA Clarington Investments Fund says buy Air Canada bonds (7.625 per cent, 2019). The Post's Jonathan Ratner, writing in Buy & Sell, says Mr. Bastasic bought the bonds at the September issue, and has also held previous bonds in the series. Mr. Bastasic highlighted the airline's improving cost structure, much better product, positive earnings, improved liquidity and younger fleet. "Air Canada's rising stock price is clearly telling you something good is happening," he said. "This is a tough business, but these are secured bonds, so we have the first right to the majority of Air Canada's assets if something goes wrong." If interest rates go up about 100 basis points, which Mr. Bastasic expects will happen in the next five years, Air Canada's pension deficit will be significantly reduced. The bonds' biggest risks are if the economy weakens and interest rates fall. Over all, the Post says Mr. Bastasic is taking a cautious approach these days in the belief that a transition needs to occur from an era of rising price-earnings multiples, because of diminishing macro risks, to an environment where earnings take over.