Q: Hello 5i Team,
I have owned perpetual preferred shares in Brookfield Corp. for many years. They formerly traded under the symbol BAM.PR.M, but after the corporate reorganization/spinoff of Brookfield Asset Management, they now trade under the symbol BN.PR.M, which is the parent company.
1. Has the risk profile of this share issue changed post reorganization/spinoff?
2. Is the issue still considered "investment grade" (Pf1 or Pf2?)
3. What is a good source of information on Canadian preferred shares and their risk
ratings?
Much appreciated,
Brian
I have owned perpetual preferred shares in Brookfield Corp. for many years. They formerly traded under the symbol BAM.PR.M, but after the corporate reorganization/spinoff of Brookfield Asset Management, they now trade under the symbol BN.PR.M, which is the parent company.
1. Has the risk profile of this share issue changed post reorganization/spinoff?
2. Is the issue still considered "investment grade" (Pf1 or Pf2?)
3. What is a good source of information on Canadian preferred shares and their risk
ratings?
Much appreciated,
Brian
5i Research Answer:
1) We would not consider the risk profile to be drastically different from pre-spinoff. The main difference is now that 25% of BAM is publicly owned. But this also gives BN an avenue to raise money if needed (by selling more BAM shares).
2) Yes, this is rated as 2L.
3) https://canadianpreferredshares.ca/compare-preferred-shares-with-credit-rating-pfd-2l/
The link above is a good starting point. www.prefblog also tends to have decent data, with some of it free.