Investment Q&A

Q: Hello 5i Team

Partners Value Split Corp. has a new offer of preferred shares (PVS.PR.L ?) - 5.50 % with a fixed redemption of June 30, 2030.

Is this new issue a reasonable preferred share - if I purchase the shares it will be after the listing as I have been unsuccessful on obtaining ipo shares from my broker.

I fully understand the only return I will receive will be the dividends - this security is for the income portion of my portfolio.

Thanks

Q: I have a number of Canadian Rate Reset and Perpetual Preferred Shares, which have done very well in the last number of months. These are held predominantly in a Registered LIF Account. The current yields are between 6~7%. The Rate Resets are laddered, resetting in different years. As the reset dates get closer it may impact the value, depending on BOC rate and reset rate. I was looking trimming these and allocating 20% of our Preferred shares BEPR for US exposure.


BEPR currently yields 9% which would increase our income, while providing greater diversification nIt seems to have paid a monthly since at least 2018.

What is 5’s view on BEPR and the safety of its distribution vs Canadian Preferred shares?

Q: I know I'm being lazy. However, can you help me to understand, when share prices are not too different ($17.80 vs $17.05), why would someone purchase the "E" series rather than the "F" series.
It seems to occur with a number of companies, a wide disparity on the dividend yields paid within their PR's sphere of series. Just interest rates at the time of origin or re-set dates?

Q: Can I get your thoughts on this pref. share? what are the main risk factors for the share price to decrease?
Yielding about 10% from a well established and funded company, share prices may be trading at a discount?

Q: Hi — Appreciate the service.

Question about FPR-T, purchased in ~2018 at $21.09 as fixed-income/yield instrument at a time of low interest rates.

Need to generate some cash and am considering selling this achieved-its-purpose stock.

Question: on a scale of 1 - 10, how much (more) upside could I be missing out on if I sell now?

Thank you.

Q: I am wondering if you can please let me know if any of these preferred shares are being recalled and if so when. Where is this information found? Is there any hope that the Enbridge and Brookfield ones will ever hit par. Thank you!

Q: I have preferred shares RY.PR.H which are scheduled to reset this Aug24/24. I have not been able to find out or notified if they are to be reset or redeemed this Aug24. I hoping you can shed more info on what is happening with the shares this month. Thanks … Cal

Q: Big move on DC.PR.B and C. Keep or sell? At $25.25 it maybe as good as it gets?

Q: Good morning,

What is your favourite preferred share ETF please?

Thanks as always.

Trevor

Q: Hello,
I am wondering if you can please provide some info on this preferred share. Bought many years ago as a "safe" investment only to see value decrease. Finally, it has hit 25 dollars. What is reasoning to hold preferred shares like these and why has this one risen? What makes this desirable now? Are they safer than common shares? I remember being told from an advisor that this is considered fixed income which I don't have a lot of. I have hated preferred shares for so long and am wondering if it makes sense to sell and reallocate funds to a bank or insurance stock. Thank you!

Q: Hello,
I have follow up questions on your June 19 response to Scott. I am not a shareholder and not planning on becoming one - Just curious about the next steps following the defaults.

You mentioned the convertible holders may issue stock causing massive dilution. It is essentially a takeover to take control of the asset disposition process and negotiation with the 1st mortgagees.

Are debentures always convertibles?

I presume the 1st mortgagee for each property owned will also send their notice of default and ask for repayment / start the foreclosure process. Is that correct and do the convertible owners have any remedy to try protecting the remaining equity?
Just looking for your general comments to understand next steps. Thank you for your great service.

Q: I own this preferred and am wondering how it will be treated with regards to the upcoming split of TRP into 2 units...where will the preferred reside after split is done....does this have the effect of reducing credit worthiness of this said preferred..many thanks

Q: I have owned BPO.PR.I for while,it pays a 12% dividend and I just purchased the othe a few days ago,pays a 10% dividend.My reason for buying them is of course for the yield,but they also will probaby out perform the company shares if rates drop.What's your opinion??

Q: This and another preferred are going to be redeemed by CIBC. While I lose a nice dividend (and it was about to reset at a higher rate), I profited from the redemption. My holdings are about half they once were due to redemptions. So I am wondering if I should return to the preferred market (which has been nothing but erratic), or reinvest the funds back into Bonds and Stocks.

Q: Hi there,

I’m looking for a preferred for a small portion of my portfolio. These BEP preferreds are floating rate variety. Can you tell me how they will behave with the current interest rate forecast and which one to buy?

Thank you.

Q: Your thoughts on this one? Both in terms of capital protection and the sustainability of the dividend (10%) over the next 2-3 years

Q: The price of BN.PR.C has dropped significantly since the first week of May. The steepest drop was at the time of the prime interest rate decrease by the B of C. Should one expect similar price drops as interest rates decrease? This preferred share now yields 11.46%. If looking for income, would you have any concerns regarding buying a part position now?
Thank you.

Q: Looking at the balance sheet is this a bankruptcy ? The conv debt is trading at 30 cents on the dollar. What is the outlook and is there a play on a turnaround?

Q: Looking back, I have had this in my RRSP for many years and it always seems to be in negative territory. I don't really understand what it is/does. Should I be rid of it. Thank you.

Q: Do you know of any reason why the shares of Fortuna dropped so much this morning. The only news I can find relates to some Notes that are being issued and some other Notes being retired.Thanks