Q: perpetual preferred shares - I am trying to understand the risks in purchasing perpetual preferreds as part of my fixed income allocation. i am going into retirement so steady income is more important to me than the day to day fluctuations in the face value of these. I understand the risks with rate reset but wondering what i am missing with Perpetuals. I hold a number of them in my US investment account and they have generally been significantly less volatile than the market in general and continue to pay me a nice steady stream of income. Am i missing something here!
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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: ECN has hit a new high. They have raised their dividend and have been buying back shares. But their preferred shares yield over 7%. Buying back the common in these circumstances and not the preferred does not appear to be prudent management. Your comments please.
Q: Good morning,
Would you please tell me what will happen to the Power Financial Preferred shares if Power Corp takes over Power Financial? I currently have some PWF.PR.F.
Thanks for your help.
Would you please tell me what will happen to the Power Financial Preferred shares if Power Corp takes over Power Financial? I currently have some PWF.PR.F.
Thanks for your help.
Q: What will happen to Power Financial Preferred shares because of the merger. I own .PWF.PR.F
Thanks
Thanks
Q: Is there a concern that BBD may discontinue the dividend on this preferred share?
Q: Should there be concerns that JE will not be able to meet its financial obligations on this convertible debtenture?
Q: Do you have an explanation why ECN.PR.A is trading below par? I would have thought with its 6.5% guaranteed coupon rate that it would not be trading below par.
Q: I've clipped the following out of the original debenture offer:
"The Debentures will be subordinated, unsecured obligations of goeasy and will bear interest at a rate of 5.75% per annum, payable semi-annually in arrears on July 31 and January 31 of each year, commencing January 31, 2018. The Debentures will be convertible at any time at the option of the holders into common shares at a conversion price of $44.00 per share. The Debentures will mature on July 31, 2022.
The Debentures will not be redeemable prior to July 31, 2020. On and after July 31, 2020 and prior to July 31, 2021, the Debentures may be redeemed by the Company, in whole or in part from time to time, on not more than 60 days and not less than 30 days prior notice at a redemption price equal to their principal amount plus accrued and unpaid interest, if any, up to but excluding the date set for redemption, provided that the weighted average trading price of the common shares on the TSX for the 20 consecutive trading days ending five trading days prior to the date on which notice of redemption is provided is at least 125% of the conversion price. On or after July 31, 2021 and prior to the maturity date, the Company may, at its option, redeem the Debentures, in whole or in part, from time to time at a redemption price equal to their principal amount plus accrued and unpaid interest. "
Would I be correct in interpreting this to mean that the company can't redeem the debentures until after the July 31, 2020 date and then only with a minimum of 30 days' notice? I also note the bit about the average trading price having to be 125% of the conversion price and am not sure I understand this wording. If you could help to clarify that I would appreciate it. I am thinking that it is better for me to hold a bit longer, as the 5.75% interest beats what I would receive as a dividend once converted to shares, but doing the math otherwise it seems to come out about even. When is a good time to convert? I assume prior to the date(s) the company can do so for me - but there seems to be two time frames in which the company is able to convert - after July 31, 2020 and after July 31, 2021, with the latter being something you would want to avoid. Am I understanding this correctly? Any additional thoughts you can offer would be appreciated - as always!
Thanks for all your good work!
Dawn
"The Debentures will be subordinated, unsecured obligations of goeasy and will bear interest at a rate of 5.75% per annum, payable semi-annually in arrears on July 31 and January 31 of each year, commencing January 31, 2018. The Debentures will be convertible at any time at the option of the holders into common shares at a conversion price of $44.00 per share. The Debentures will mature on July 31, 2022.
The Debentures will not be redeemable prior to July 31, 2020. On and after July 31, 2020 and prior to July 31, 2021, the Debentures may be redeemed by the Company, in whole or in part from time to time, on not more than 60 days and not less than 30 days prior notice at a redemption price equal to their principal amount plus accrued and unpaid interest, if any, up to but excluding the date set for redemption, provided that the weighted average trading price of the common shares on the TSX for the 20 consecutive trading days ending five trading days prior to the date on which notice of redemption is provided is at least 125% of the conversion price. On or after July 31, 2021 and prior to the maturity date, the Company may, at its option, redeem the Debentures, in whole or in part, from time to time at a redemption price equal to their principal amount plus accrued and unpaid interest. "
Would I be correct in interpreting this to mean that the company can't redeem the debentures until after the July 31, 2020 date and then only with a minimum of 30 days' notice? I also note the bit about the average trading price having to be 125% of the conversion price and am not sure I understand this wording. If you could help to clarify that I would appreciate it. I am thinking that it is better for me to hold a bit longer, as the 5.75% interest beats what I would receive as a dividend once converted to shares, but doing the math otherwise it seems to come out about even. When is a good time to convert? I assume prior to the date(s) the company can do so for me - but there seems to be two time frames in which the company is able to convert - after July 31, 2020 and after July 31, 2021, with the latter being something you would want to avoid. Am I understanding this correctly? Any additional thoughts you can offer would be appreciated - as always!
Thanks for all your good work!
Dawn
Q: The price of the ENB.PF.A, ENB.PF.E, ENB.PR.Y, EBGEF, RY.PR.H and TD.PF.B preferred shares have come off their lows and are now starting to increase. What are your thoughts on why the price of preferred shares are on the increase. Thanks … Cal
Q: Would appreciate your opinion on ZPR vs HPR Preferred share ETFs.
Q: CPD was a disaster and I sold it for loss. Now I'm looking at XPF - it held up better and the US exposure may add diversification. What do you think? Or should one give a miss to these pref ETFs altogether?
Thank you
jerry
Thank you
jerry
Q: Do corporate bonds perform well during recession? I am thinking of buying one of Chemtrade’s debentures, series B, C, D or E. Which one will perform better?
Q: Can you give me info on this preferred. I'm intrigued by the brookfield purchase.
I know little or nothing about preferreds in general. My wife is a U.S. citizen and am thinking about this for her 401k.
Any help you can provide would be appreciated.
I know little or nothing about preferreds in general. My wife is a U.S. citizen and am thinking about this for her 401k.
Any help you can provide would be appreciated.
Q: Could you explain why this preferred share is selling such a discount . Would it be a good buying opportunity for income? What would be the possible downside?
Q: I was thinking of buying this for income before Brookfield bought CBB. It is still trading below par but I am concerned, that Brookfield could somehow "convert" the prefs to their common stock (BIP). I am not worried about it being called. Is this possible or am I being irrational?
Thanks
Thanks
Q: The 7% CVD is being called early. It is in my RRIF and converts to 121 shares per thousand.
Do you suggest converting into the common shares which are now selling at $12.53 or would you sell the CVD for $151?
In other words, do you like TVK as a RRIF holding or do you think I could do better.
And if so what would you suggest with the proceeds?
Sheldon
Do you suggest converting into the common shares which are now selling at $12.53 or would you sell the CVD for $151?
In other words, do you like TVK as a RRIF holding or do you think I could do better.
And if so what would you suggest with the proceeds?
Sheldon
Q: Greetings,
I am getting close to retirement so starting to shift my portfolio to get a better balance of income and growth. Is now the time to start looking at preferred shares of companies that appear to be fully priced. For example, BAM. A appears expensive but the preferreds esp the perpetuals, BAM.PR.N appear cheap on a relative basis. I already own BAM.A but wanting to keep for the growth but want to add the Preferred to get more income. Does this seem reasonable given where the preferreds are currently trading.
thanks as always for your advise.
k
I am getting close to retirement so starting to shift my portfolio to get a better balance of income and growth. Is now the time to start looking at preferred shares of companies that appear to be fully priced. For example, BAM. A appears expensive but the preferreds esp the perpetuals, BAM.PR.N appear cheap on a relative basis. I already own BAM.A but wanting to keep for the growth but want to add the Preferred to get more income. Does this seem reasonable given where the preferreds are currently trading.
thanks as always for your advise.
k
Q: dear 5i
can you explain how you access preferblog.com ?
thank you
jacques
can you explain how you access preferblog.com ?
thank you
jacques
Q: I was surprised discover the high yield (~6.4%) on bank pref.
What might be the negatives for part of an income portfolio?
Thanks
What might be the negatives for part of an income portfolio?
Thanks
Q: Good morning
I own CPD which has trended downwards in price over the last year and is now yielding 6.9%. I am considering selling CPD for tax losses and if so, what would be a more sensible strategy. Buy back into CPD after the appropriate delay or Buy something else like a blue chip equity. I know the legal difference between preferred and common but it seems that over an extended buy and hold, commons will prevail albeit with dips along the way. In reality how often are preferred rights called into play to the detriment of common with Canadian blue chips? To me, preferreds offer the worst of both worlds. At this point, my CPD shares are part of my fixed income side and a switch to equities will rebalance things, I know.
I own CPD which has trended downwards in price over the last year and is now yielding 6.9%. I am considering selling CPD for tax losses and if so, what would be a more sensible strategy. Buy back into CPD after the appropriate delay or Buy something else like a blue chip equity. I know the legal difference between preferred and common but it seems that over an extended buy and hold, commons will prevail albeit with dips along the way. In reality how often are preferred rights called into play to the detriment of common with Canadian blue chips? To me, preferreds offer the worst of both worlds. At this point, my CPD shares are part of my fixed income side and a switch to equities will rebalance things, I know.