Q: I have held NPI.PR.A for a number of years (approx 5-8 ). Purchase price was something around 13.50 and it displayed alot of volatility rising into the 20s and after falling into the lo to mid teens.
After again reaching 21.25 recently I asked my financial advisor if we should sell before experiencing the elevator trip down again and he felt with the lo yield and unlikely prospects the Prep would be called it was best to sell the equity.
Since that time the equity has been on a relentless price increase. Govt of Canada rates have been in decline altho slower lately ...
What have i missed in the timing of my sale of this Reset Pref? When you look at the Reset Premium based on Sept reset is the strength since my recent sale related to the likelihood this Reset may in fact be called?
Trying to better learn from why i have missed some of the easiest gains on this equity.
After again reaching 21.25 recently I asked my financial advisor if we should sell before experiencing the elevator trip down again and he felt with the lo yield and unlikely prospects the Prep would be called it was best to sell the equity.
Since that time the equity has been on a relentless price increase. Govt of Canada rates have been in decline altho slower lately ...
What have i missed in the timing of my sale of this Reset Pref? When you look at the Reset Premium based on Sept reset is the strength since my recent sale related to the likelihood this Reset may in fact be called?
Trying to better learn from why i have missed some of the easiest gains on this equity.
5i Research Answer:
We would expect the move comes largely from investors betting on a redemption. A redemption at $25 would still imply a nice gain from current levels.