Re: Chemtrade Logistics Income Fund Announces $120 Million Convertible Debenture Bought Deal Financing
At one time, I had a number of convertible debentures including CHE.DB.B that matured in June. I do still hold a little of CHE.UN itself. It has recovered somewhat.
They are a way of buying what are essentially corporate bonds, but with a few possible twists. They often get called 1 year before the maturation date. So I always assumed that would happen. I also tried to buy at close to par, because that is all you will get if called near the maturity date. THere used to be an excellent summary of convertibles on Financial Post. But with it gone, it is hard to follow CD's
I gave up on these CDs. BMOIL charge high fees to buy or sell - Around $40 per trade. They call them exchange traded fixed income. I made a special arrangement whereby I only paid $9.95. But had to call each time I made a trade. I believe some other brokerages just charge their usual equity trading fee.