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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Peter, one of the worst 'safe' investments I have ever made has been ZPR. Looking for a somewhat enhanced yield and a bit more safety, my 2014 investment shockingly dropped by about 40% in a year! The explanation 5i offered at the time was the declining interest rates combined with ZPR's rate reset preferred share holdings. But now, interest rates are INCREASING and ZPR is again down - almost 20% in the past year, and 12% in just the last six months. I realize other factors can move prices, but I'm mystified how a supposedly more stable investment can decline so much, so quickly, both when prevailing interest rates go UP and when they go DOWN! Do you have any explanation that might make sense to a mere mortal?
Read Answer Asked by James on October 21, 2022
Q: Hi
Canadian Pref Share Market seems to live in an environment of low liquidity and sell off no matter what other indicators imply about the future.
Today it seems strange that a pref share ( ENB.PR.D ) would trade at $17.50 (Yield: 6.37%) with the Reset Date approaching in four months.
With only a 0.75% raise by the BOC (between now and Feb 1, 2023) this share at current price will yield 9.76% on the reset. ( 8.69% without any change in Rates)

Is it just that investors will not pay for Pref Share future Resets?
Is ETF selling driving this share price as Managers are forced to liquidate as investor flee pref share ETF again?
Are investors holding out for a Bottom and then deploy cash to equities (high return) instead of Pref shares ( fixed return)?

What's up that a pref may be about to yield >9% and no one wants it?

Thanks
Dave


Read Answer Asked by David on October 16, 2022
Q: I have a ladder of rate reset preferred shares that pay a nice yield. My anticipated yield when they reset is looking very attractive. They seemed to be in favour in 2021. Despite rising rates in 2022, they have had a very poor year this year (across the board, not just my holdings). Why is that ?

Thanks,
Mark
Read Answer Asked by Mark on September 21, 2022
Q: Is there a site which lists the preferred share reset dates for the TSX. If not is it possible for you to list a few that reset after October 1 and rank them from best to worst?
Thanks as always, Bryan
Read Answer Asked by Bryan on September 08, 2022
Q: Hi and thank you for a splendid service

northwest health care just put an offering out on preferred shareswill this affect the stock price in a similar manner that the EIF offering did(down 5%??)
Read Answer Asked by Peter on August 17, 2022
Q: TD and BMO recently issued preferred shares. TD 5 Year Rate Reset Series 28 yielding 7.232%, reset 4.2%. BMO 5 Year Rate Reset Series 50 yielding 7.376%, reset 4.25.
Both press releases both include the line "will issue to certain institutional investors"
Can retail investors purchase these? The rate and reset seem fantastic based on the quality of the issuers.
Read Answer Asked by Stewart on August 09, 2022
Q: These rate reset preferred are 70% of bank prime rate. I am confused on their fact sheet as to when the reset occur. now that all the major banks have increased to 4.7. when is the reset going into effect. The next dividend coming at the end of July is declared at the old rate, Will the rate adjust for the next dividend after this one?
Thank you.
Read Answer Asked by francois on July 19, 2022
Q: Bombardier has announced a conversion for shareholders who want it and are holding series 3 and series 2 shares. Series 3 will pay about 4.58% quarterly based on government bond + 145%. Series 2 is floating rate based on a percentage of prime. I currently hold series 3 with over a 20% gain. What do you recommend?
Read Answer Asked by Antoinette on July 13, 2022
Q: Good (not so good ..) Monday.
Have you seen any official press release about these 2 preferred which will reset at the end of June. Prefblog’site mentionned that EFN.PI will be redeemed. I have not seen anything on EFN.PI or BPO.PG. Some cies really drag their feet. Thanks
Read Answer Asked by Denise on June 14, 2022
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