HomeMy WebLinkAboutThe Goderich Signal-Star, 2009-03-11, Page 8Page A8 - Goderich Signal -Star, Wednesday, March 11, 2009
Photo by Dominique Milburn
Above L -R: IODE members Roz Campbell, Cathy Boddy, Margot Morris and Lynn Bearden
join family members of the late Audrey Royal,Graham Royal and earl Rawson to unviel a
memorial lighting fixture in AMGH's Reflection Room, Right, AMGH CEO Bill Thibert joins
Barb Martin, Peggy Ireland and Natalie Cousteils (middle row) as Gail Trewitt, Judy Marhall
and Nancy Hughes cut the ribbon of the new Palliative Care Suite,
on nartof
a ante portfo1io
Stocks may grab all the headlines, but they're not the only way to invest in companies.
Corporate bonds should also be part of a balanced portfolio, yet they remain overlooked by
many Canadian investors. Here's a basic primer to get you familiar with this important asset
class.
Corporate bonds are issued -from companies that are familiar to most Canadians, such as
Royal Bank of Canada, The lbronto-Dominion Bank, Canadian Tire, TransCanada Pipelines,
General Electric, Loblaw and Telus, just to name few. Unlike stocks, bonds do not give investors
ownership interest in the issuing company. Instead, they are debt instruments that are
considered _financial obligations.
Each bond sold - and they are usually issued In denominations of $1,000 - comes with
maturity date. At maturity, which can be anywhere from a few years away to 30 years or more
into the future, the company is to reimburse the investor for the sum provided. In between the
date of purchase of the bond and its maturity date, the investor is typically paid semi-annual
interest, though interest payments can also be made on an annual, quarterly or monthly basis.
This steady stream of income can make corporate bonds attractive fixed-income vehicle for
everyday expenses.
A bond's yield to maturity is the accumulation of that interest plus any profit (or loss) that is
recorded on it maturation date. Generally speaking, the value of corporate bonds decreases as
interest rates increase, and vice versa.
All companies that issue bonds are analyzed by ratings agencies, such as Standard &
Poor's and DBRS. These agencies assign credit ratings, which are based on a company's
financial strength, future prospects and past history. For bonds to be known as "investment
grade; they must be rated "BBB-" or higher. If the rating is lower than BBB-, they are considered
"non -investment grade"- - often referred to as "high yield" or "junk" bonds. These are riskier
investments because the company is deemed to have a more uncertain ability to repay the
interest of principal on its debt obligations.
It's always important to carefully assess the risks of corporate bonds. The ultimate
risk relates to a company going out of business. If that were to happen, you could lose your
investment. In addition, risk comes with credit rating changes. • If you buy a bond from a
company, and its credit ratings are downgraded, the value of your bond could decrease
because investors will expect a: high level of compensation for the greater risk. That's why you
should stick with investment-grade quality bonds from a variety of issuers in different sectors.
Diversification in owning more than one issuer is important.
Corporate bonds often provide higher rates than other fixed-income instruments such
as government or provincial bonds. But like government bonds, corporate bonds of the
same credit quality with the longest terms generally offer the highest rates, to compensate for,
increased uncertainty over an extended time.
Corporate bonds are also interesting because they can have certain features, such as the call
feature, which is the right of the company to buy back the bonds prior to maturation at par.
For more details on corporate bonds, speak to your financial advisor*. A pro onai cat,
•
you choose the right corporate bonds for your portfolio. ;�
5 H,.
Edward Jones
'.:Erin Roy, CFP
%I i, ancial Advisor
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Hospital receives dash of home comfort
The Maple Leaf chapter of the IODE has floor, a reflections room has been designed
partnered with a palliative care committee with home furnishings and an intricate
at Goderich's Alexandra Marine and Gen- stained glass wall lamp that pays tribute to
eral Hospital (AMGH) in an effort to bring IODE member Audrey Royal.
a measure of home comfort to the first and This journey starts with the patient and
second floors. their family," she said." At some point,
On March 5, nearly 30 people lined a we've all been touched by stories of deal -
second floor corridor at AMGH to com- ing with illness and disease. This is one of
memorate the official unveiling of two many services that we offer at AMGH, and
rethought rooms that will benefit AMGH our journey is to help our patients and their
patients as well as their families. families navigate in their time of need."
"This is a great day," said director of pa- While the Palliative Care Suite will
tient services Cheryl Taylor. "We're all here comfort patients dealing with illness,
to celebrate a project that is over a year in the quiet Reflections Room is hoped to
the making." provide a more comfortable place where
These two rooms have been redesigned family members can meet with their phy-
with comfort in mind, Taylor said. On the sicians to discuss next steps or arrange -
second floor, a palliative care room boasts ments •l he IODE chapter led the charge
a hardwood floor look with home comforts in the design and installation of both
including a plush bedside recliner and en- rooms, and provided fundraising dollars
tertainment system. Just below on the first toward the project's completion.
to
92 1.he Square
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