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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 am currently looking at taking a position in a preferred issue. I have identified BPO.PR.C and TRP.PR.C. as two that might fit my portfolio. The concern i have with TRP.PR.C is that of it resetting on a floating rate basis viz a vis BPO.PR.C which would be less desirable. Both companies are creditworthy to varying depgrees, so it comes down to the reset standard and reset dates. Could you please provide your comments and feel free to add any other similar preferred issues.
Thanks, David
Read Answer Asked by david on October 19, 2020
Q: Hello Team, once I noticed that GIC's had come down.. I decided to purchase some of the Preferred shares which have lost in value considerably ( 20-45%). BCE PR. R
RY PR H, ENB PR D, TD PR A
did I make a mistake? Do I hold on? what do you recommend? I'm 78 Years old and looking for some safety.
Thank you ! Heidi
Read Answer Asked by Adelheid on October 07, 2020
Q: I will appreciate any comments you may have about the preferred shares of Partners Value Split Corporation. What are the splitshare preferred shares?
Thanks
Read Answer Asked by Terry on October 07, 2020
Q: I am interested in buying this for an income holding but don't find any info on this particular issue.
Is it trading at a fair price here and what happens when interest goes below 1%?
Where can I find out when the rate is reset and at what rate.
Is there a recall date?
Thank you for your tremendous service.
Read Answer Asked by Harry on October 01, 2020
Q: The company announced a debenture financing at 6.5% today to pay out a convertible debenture that only cost 5.5% and does not mature until Dec/21. The proposed debenture does not mature until Dec/20025. Is it fair to surmise that the company was prepared to pay a higher interest rate to get a longer maturity and to remove the possibility that the current debentures might be converted to shares because it believes the share price may in fact increase above the $8.35 conversion price?
Read Answer Asked by Murray on September 15, 2020
Q: Have held NWC for a few years as one my major consumer staple holdings. Am now wanting to deploy more resources to this sector and want an opinion on this (WN.PR.A) perpetual preferred issue - similar type of sector and I would think limited volatility (March notwithstanding). With very low interest rates, is there a major concern of redemption? Thanks for your help and support, Bill
Read Answer Asked by Bill on September 14, 2020
Q: Trying to make some 'secure' income of 5% or more. I've heard that Split Corp preferred shares may be a more stable route to go. Any advice in this regard? Could you also recommend a few Split Corp, or regular preferred shares, that meet that criteria of being 'super safe' but yield at least 5%?
Could you also please recommend any websites that cover the preferred space well.
Thank you very much.

PS: I asked a similar question a couple days ago but I don't think it was received.
Read Answer Asked by Toge on August 11, 2020
Q: This morning Phillip's question and your response convinced me that my portfolio should include minimum rate reset preferred shares. I would appreciate it if you would provide me with your recommendation for 3 or 4 low risk preferreds.
Read Answer Asked by Dennis on August 05, 2020
Q: I cannot fathom why investors would buy rate reset preferreds when the resets will virtually all significantly lower their current dividend. The MINIMUM rate resets, to my mind, are the only preferreds to buy and there are many good companies paying between 5 3/4% and 7% and this rate will not drop. Additionally, if and when rates increase they could be paying an even higher dividend. No one seems to ask about minimum rate resets! Am I missing something?
Thanks
Phillip
Read Answer Asked by Philip on August 04, 2020
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