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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 have a ladder of rate reset preferred shares that pay a nice yield. My anticipated yield when they reset is looking very attractive. They seemed to be in favour in 2021. Despite rising rates in 2022, they have had a very poor year this year (across the board, not just my holdings). Why is that ?

Thanks,
Mark

Read Answer Asked by Mark on September 21, 2022

Q: Is there a site which lists the preferred share reset dates for the TSX. If not is it possible for you to list a few that reset after October 1 and rank them from best to worst?
Thanks as always, Bryan

Read Answer Asked by Bryan on September 08, 2022

Q: Hi and thank you for a splendid service

northwest health care just put an offering out on preferred shareswill this affect the stock price in a similar manner that the EIF offering did(down 5%??)

Read Answer Asked by Peter on August 17, 2022

Q: TD and BMO recently issued preferred shares. TD 5 Year Rate Reset Series 28 yielding 7.232%, reset 4.2%. BMO 5 Year Rate Reset Series 50 yielding 7.376%, reset 4.25.
Both press releases both include the line "will issue to certain institutional investors"
Can retail investors purchase these? The rate and reset seem fantastic based on the quality of the issuers.

Read Answer Asked by Stewart on August 09, 2022

Q: These rate reset preferred are 70% of bank prime rate. I am confused on their fact sheet as to when the reset occur. now that all the major banks have increased to 4.7. when is the reset going into effect. The next dividend coming at the end of July is declared at the old rate, Will the rate adjust for the next dividend after this one?
Thank you.

Read Answer Asked by francois on July 19, 2022

Q: Bombardier has announced a conversion for shareholders who want it and are holding series 3 and series 2 shares. Series 3 will pay about 4.58% quarterly based on government bond + 145%. Series 2 is floating rate based on a percentage of prime. I currently hold series 3 with over a 20% gain. What do you recommend?

Read Answer Asked by Antoinette on July 13, 2022

Q: Good (not so good ..) Monday.
Have you seen any official press release about these 2 preferred which will reset at the end of June. Prefblog’site mentionned that EFN.PI will be redeemed. I have not seen anything on EFN.PI or BPO.PG. Some cies really drag their feet. Thanks

Read Answer Asked by Denise on June 14, 2022

Q: Good morning and thanks for the role you fill in my investment decision making. I hold ECN.Pr.C (along with HPR and ZPR) and have for years. I have a decision to make regarding conversion. As I understand it I can do nothing and continue at a higher rate of return; convert to a floating rate and have it reset quarterly. Could you please confirm my choices along with your recommendation. Is this a buy and, if not, are there better alternatives? 3-5 year timeline.

Read Answer Asked by Bryan on June 07, 2022

Q: Hi,
I'm wondering about the new issue for convertible debentures from PBH - is this a good deal, given the interest rate, vs just buying the stock? I notice that the first interest payment won't be until Mar 2023, so a long time for the cash to sit idle. However the conversion price of 160.25 seems pretty good, given the stock closed today at 100.17. If the deal is a worthy one, then is it best to try to buy the new issue, or wait until after it closes to see how it settles? As always, your advice is much appreciated!
Dawn

Read Answer Asked by Dawn on May 25, 2022

Q: I've been trying to figure out this inflation/interest rate mess as it relates to my RRSP. I dumped a bunch of low rate government strip bonds in January and I'm thinking of replacing them with these 3 preferreds. They're fixed-rate resets yielding in the 5 to 6% range. They are all below the recall price. I know that trade volumes are low. What do you think?

Read Answer Asked by DAVE on May 19, 2022

Q: Seems like there is some indiscriminate selling of rate reset prefs
last few days. Not sure this makes sense.
What are your three top rate reset ideas at the moment, that are NOT in the energy/pipeline sector
Thanks

Read Answer Asked by john on May 10, 2022

Q: Do you have any rate reset prefs that you think are worthwhile here? Thanks

Read Answer Asked by Martin on May 09, 2022