Investment Q&A

Q: Why would POW issue new PWF preferred since PWF is now part of POW? To redeem old issues may be?

Any news of the Sep23 meeting for STC share consolidation? Strange it takes so long.

Thanks all

Q: New to fixed income investments. Received the following from TD. New offering Power Financial Corp 4.50% Non-Cumulative First Preferred Shares, Series 23. Can you explain what is offered, what should i be looking for as far as quality and is this a good first step?
Thx

Q: Could you please explain the difference between Brookfield's common and preferred stocks which explains why they perform so differently? According to the Globe and Mail:

BAM.A is up 29.84% ytd, down 4% in the last month BAM.PR-R is up 39.63% ytd, 97% in a month BAM.PR-K is up 45.37% ytd, up 7% in thirty days. BAM-PR-G is up 58.55% ytd and 8.26% over the last thirty days.

Why would these preferred shares be moving so much higher than BAM.A itself? Do you expect this to continue? If so doesn't it make sense to buy the preferred shares? If so, which of the series would you buy?

Q: If George Weston gets privatized what happens with this issue?

Q: Do you like Fortis and if so which do you prefer:
Series F Perpetual
Series G Rate Reset
Series H Rate Reset
Series J Perpetual
Series K Rate Reset
Series M Rate Reset

Q: Which preferred share ETF would you recommend among these four: HPR, ZPR, CPD, and ZUP, and is this sector worth investing in. It pays a nice dividend but the invested capital tends to get depreciated. Is now a good time to put money in this sector?

Q: hello
regarding preferred ENB.pr.U
I see it matures June 2022 and if renewed, will pay 3.05% + the yield of the 5-year BOC bond. Where can I find the current real time yield of the 5-year BOC bond?
Knowing where rates are today, and what they will likely be in June 2022, is this a good time to buy or is it safer to wait? What's your PRO vs CON on it?
Thanks

Q: Brookfield Office was taken in by Property Partners and now both have been taken private by Brookfield Asset Mgt.

You once wrote these shares are not the best choice as the office market was in difficult times....not unlike today as Covid Delta comes on.

If BAM has taken the real estate private, does the risk of default not get reduced? Making these prefs a reasonable buy below $25, Min Reset ( 5.10%) with a current yield above 5.10%?

How likely is it that Brookfield parent would let a Sub default on payments?

Dave

Q: I hold Canaccord series A 5 year rate reset prefs which will reset in September at 5yr GOC + 3.21%. They also have a voluntary conversion privilege into series B floating rate prefs which pay 3 month GOC T-Bill + the same 3.21%. With the likelihood that interest rates are likely to go up from here, would you agree that it makes sense to opt for the conversion? The series A prefs have been on a tear over the past 9 months from a low near $12 to their current price close to $19. Is it likely that a large driver of the price increase is related to excitement over the upcoming conversion privilege?

Q: These debentures are being called. If it's the intent to convert to the common shares, is it better to sell the debentures and buy the common shares. If held until Sep 9, the company converting to shares at 95% on the 20 day avg sounds like ending up with less common shares. Which way would work best?

Q: These units are down > 60% today after an announcement that the company is doing a debt exchange and suspending cash distributions on preferred shares. I find this very surprising as the units have been steadily going up and were trading at above par prior to the announcement. Doesn't the market typically anticipate such things (i.e. if there was any reason to believe the distribution would be cut or suspended, the units would not be trading anywhere close to par). Any thoughts on this, especially given that Brookfield owns the common shares and the debt but not the preferred? Where does that leave preferred unit holders? Would it be prudent to simply take my loss and exit the position? Thanks.

Q: I noticed that AQN is issuing units consisting of shares and notes yielding 7.75% to 2026. Do you have any thoughts about this investment?
Thanks for your insight.
Ian

Q: Hello
I will appreciate your comments on the Convertible debenture MR.DB.B.
If not suitable for a conservative investor, do you recommend any other convertible debenture?
Thank you for your insight as always.

Q: Re info on Cdn prefs try:

canadianpreferredshares.ca

Hugh

Q: Peter,

What research source or service would provide a full listing of Cdn pref shares including credit rating, type of preferred, dividend plus any redemption terms? Sedar is too cumbersome for this.

Thanks

Paul

Q: When does this preferred share reset? It has done extremely well since I bought it near $12 but the price can change as it nears the reset date.

BTW, it would be great if your watchlist info had the reset dates on the prefs.

Q: Peter,

Yesterday you answered my question on the Loblaws preferred stock. You gave different redemption dates. Where do you get this info? Where is the best place for a DIY person to find it?

Thank you,

Paul

Q: Peter,

Is SEDAR the only sure fire source for call dates on pref shares? I find the company's own website does not always make it clear. I find L.Pr.B a bit of an oddity. It is yielding 5% with a call date of June 2024 from what I can see. Most p/s are now yielding less than 5%. Is this with this issue because of the duration of time to call?

Thank you

Paul

Q: I'm not really a preferred share investor because I don't really understand the various nuances of them. I understand the difference between perpetual, reset, etc but not the finer points.... And I only bought them because no one knew what was going to happen with the Covid crash and I happened to be 30% in cash ..... My reasoning was if the blue chips can't cover their preferred dividends it's the end of the world and I may as well head down to the harbour, steal a tugboat { I'm a retired tugboater } a barge full of beer and head north with a fishing pole ..... My preferreds have returned 70% plus dividends for me and I am thinking of exiting . My problem is they keep rising and I don't understand why . BAM.PR.B was over $18 in 2018 and currently yields 3.1% at a considerably lower price ..... ENB.PR.H is not nearly as far off of it's 2018 price so I'm guessing there are differences between the two in spite of the fact they are both " resets " ..... I'm planning on selling both but there is no rush . So the question is why the rise ? Is there current potential to for BAM.PR.B to return to 2018 prices or even rise more at all ? ......And why is there so much of a difference in 2018 to today's prices between the two preferreds ?

Q: I bought these preferreds on issue in 2015 . For most of the time they have traded well below issue price . Recently they have recovered back to the issue price . would you still advise on holding these prefs