Q: In a recent update 5i stated they would: "Trim iShares Canadian Preferred Shares ETF (CPD) to a 3.5% Weighting - Trade Rationale - We feel that the thesis for preferred shares has begun to play out..."
Can you please elaborate on what you mean by the thesis "has begun to play out"?
I bought some heavily discounted preferred shares in late 2023 and have seen the unit price bounce up 50% and still paying a strong dividend (over 10%) even at the new price. Trying to balance risk / reward and super curious on your thoughts on the preferred share "thesis".
Love your service and thank you!!
Can you please elaborate on what you mean by the thesis "has begun to play out"?
I bought some heavily discounted preferred shares in late 2023 and have seen the unit price bounce up 50% and still paying a strong dividend (over 10%) even at the new price. Trying to balance risk / reward and super curious on your thoughts on the preferred share "thesis".
Love your service and thank you!!
5i Research Answer:
Preferreds have rallied hard on three interest rate cuts in Canada. While they may continue to...