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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: I hold these Brookfield Infrastructure preferred which currently pay 5% but reset March 31, 2023 at 6.642%. I can happily continue to hold these, but alternatively I have the option to convert them to Series 10 Preferred which will pay a floating Rate of 3% above the Government of Canada 3 month Treasury Bills, reset quarterly. This will be set for the first quarter to June 30 at 7.564%.

I suppose it's a gamble on what interest rates are likely to do over the next 5 years; but do you have any thoughts on which option I should choose?
Read Answer Asked by David on March 07, 2023
Q: I'm down around 20% on these preferreds in less than a year. Will the price ever recover? Hang on to them or bail out. They represent 5% of total portfolio.
Read Answer Asked by Vern on June 18, 2019
Q: Preferreds have slowly recovered however the ones from Brookfield infrastructure seem to be stalled out. Is there something in the set up of these ones that i am missing.

thanks as always
Read Answer Asked by kelly on March 08, 2019
Q: Can you explain to me this preferred share,and why this one is down so much.
How can they act so totally different than the common shares?what are the chances they are going to be called.will that be for $25 if this happens?
When and how are they gonna be resrt?
Is this a preferred share you like,or any others?
The company and dividend look very enticing
Read Answer Asked by Josh on February 27, 2019
Q: I understand rate reset preferreds have dropped in market price due to the expectations of possible lower interest payouts when they reset; but can you explain to me why Prefs with a minimum reset are so affected? BIP Preferred Series 9 pay a nominal 5% and have a minimum reset of 5% (though the reset could possibly be higher if rates rise) yet the market value has dropped from $25 to just over $21. If purchased today the buyer can collect dividends equating to 5.9% and still enjoy at least this rate after they reset, or collect $25 per unit if they are called. So why are they down so much? Am I missing something?
Read Answer Asked by David on February 19, 2019
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