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Canadian Utilities Limited cumulative redeemable second preferred shares series FF (CU.PR.I)
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Manulife Financial Corporation Non-Cumulative Class A Preferred Shares Series 2 (MFC.PR.B)
Q: I currently hold the above noted preferreds in an unregistered cash account, and they are the worst performers. Would it be advisable to take the losses and move on to something else, or sit tight and continue to get the dividends?
5i Research Answer:
With rates rising significantly over the past year, the trading prices for preferreds have fallen sharply. With the expectation that the next larger moves in interest rate would likely be down, we would hold on for now. If liquidity is needed and patience is running out, we would be okay switching out of these preferreds.