Q: I own Series 2 Adjustable Rate Preferred Shares. The company has given notice that these shares can be converted on a one-for-one basis into Series3 Preferred Shares. Would it be more advantageous for me to keep the Series 2 Adjustable Rate Preferred Shares or convert them into the Series 3 Preferred Shares?
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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: On June 17th there was an article in the Globe entitled " Are these preferreds a 5 percent solution", by Rob Carrick. It spoke of many different perpetual preferreds paying close to 5%. What is your opinion as to how any perpetual preferreds would fit into any investment portfolio in today's investment climate. Would you ever recommend them?
Thank you
Paul
Thank you
Paul
Q: Hallo Peter, how would variable preferred ETFs would be effected by interest rate increase? Thinking of VRP, PGX (us), can you suggest a couple more of Canadian and US ETFs. Many thanks, J.A.P. Burlington
Q: Peter to you have link that I can get the perspective on this pref
Many thanks
Stan
Ala.pr.u
Many thanks
Stan
Ala.pr.u
Q: In a question asked by David on June 16th, the yield to maturity on TD.PR.G preferred shares was calculated to be approximately 3.1%. Could you please explain how the 3.1% was calculated. Thanks … Cal
Q: Good morning
I purchased TD preferred rate reset shares TD.PF.G at $25 par in the IPO just over a year ago. The shares now trade at about $27. The initial dividend was set at 5.5% until April 30 2021 at which date either the shares will be redeemed at par or the dividend reset at the 5 year Bank of Canada rate plus 4.66%. The renewal rate seems to be quite high so I suspect the shares will be redeemed in 2021. If that is the case, the yield to maturity is approximately 3.1%, so I am considering selling and moving on. Is this analysis flawed?
David
I purchased TD preferred rate reset shares TD.PF.G at $25 par in the IPO just over a year ago. The shares now trade at about $27. The initial dividend was set at 5.5% until April 30 2021 at which date either the shares will be redeemed at par or the dividend reset at the 5 year Bank of Canada rate plus 4.66%. The renewal rate seems to be quite high so I suspect the shares will be redeemed in 2021. If that is the case, the yield to maturity is approximately 3.1%, so I am considering selling and moving on. Is this analysis flawed?
David
Q: Are the prefs (C) cumulative?
Any guess as to when pref divi's might be resumed?
Any guess as to when pref divi's might be resumed?
Q: Many of the preferred reset shares are trading at large discount. In the expectation of higher interest rate which of them do you see delivering higher returns when the reset dates approache?
Thanks
Thanks
Q: Hi 5I, I need your help in explaining the difference between "Min. rate-reset" and "Rate-reset" preferred. Also, how will int.rate increase effect them, suggest some you favor, and recommend to buy.
Q: Today I Received from my broker an 'Action Notice' re TA Cumulative Redeemable Rate ResetFirst Preferred Series C' and whether I want to hold these shares or convert them into the Series D preferred.
Can you please tell me which way you would reccommend I go on this one and why.
Thanks
Sheldon
Can you please tell me which way you would reccommend I go on this one and why.
Thanks
Sheldon
Q: I'm thinking of adding five Canadian preferreds to my portfolio over the next few months. Currently I don't have any. Can you suggest a good source of information for selection and evaluation.
Thanks
Peter
Thanks
Peter
Q: EFN.PR.C fell yesterday and are down again today, is there any reason to worry about the preferreds? Thanks.
Q: They are offering convertible debentures paying 5.25% - attractive since I think by 2024 ALC could be much higher than $13. However, the conversion is at more tan $20 per share. The extra security would mean giving up more than 50% upside. Does this seem an usually high conversion price? Do you think it is an attractive offering?
Q: Would you mind commenting $75 million covertible debenture issue. I think the market likes the issue. It appears the new debenture will be replacing an expiring debenture at a lower interest rate so I suppose that should be good for the company's bottom line. The news release states the conversion price is $21.15 per share. Pardon my ignorance but how exactly does the conversion work? Does a debenture act in a similar fashion to a bond? If interest rates go up does the price of debenture go down? How would the debenture act in effect of a market crash?
Thank you,
Jim
Thank you,
Jim
Q: What are your thoughts on the preferred shares of Aimia?
Q: For portfolio weighting purposes do I include preferred shares in fixed income or equity? Is it also necessary to further break out pref shares as to the industry they are in or is credit worthiness the primary concern? In other words, if 10% of my total portfolio is in financial pref shares, and I also have 15% of my equities in financials, should I then consider myself to hold 25% financials and thus be overweight?
Thanks for your help.
Paul F.
Thanks for your help.
Paul F.
Q: General question regarding preferred shares. Looking at Aimia series 3, they have a call/ reset date of March 2019 reset is 5year GoC +4 %. Does the company, at that time have 2 choices, either recall and pay out par value or roll them over at the new rate?
Thanks
Auftar
Thanks
Auftar
Q: Hello 5i;
There are several ways to buy bond etf`s that are better during possible rising interest rate environments .
Those being;
1- Laddered maturity schedules
2-Floating rate bond etf`s
3-Preferred shares with a minimum reset provision .
Which of the 3 would you consider best , 2nd best etc .and what would be your top 2-3 choices for each .
Thanks
Bill C.
There are several ways to buy bond etf`s that are better during possible rising interest rate environments .
Those being;
1- Laddered maturity schedules
2-Floating rate bond etf`s
3-Preferred shares with a minimum reset provision .
Which of the 3 would you consider best , 2nd best etc .and what would be your top 2-3 choices for each .
Thanks
Bill C.
Q: Just a comment and clarification on Stevens Qs: I am surprised the 6.25% minimum ECN preferred share financing is still open as it's only $100M. Does this reflect badly on the issue? I thought a 6.25% guaranteed minimum was a good buy even if rates eventually rise.
Thanks.
--- The issue was closed the same day at TD and the issue has been completed yesterday as per mail from TDW.
Issue Completed - ECN Capital Corp. 6.25% Cumulative Rate Reset Preferred Shares, Series C
I also see that they have taken the money from my account for shares allocated.
Thanks.
--- The issue was closed the same day at TD and the issue has been completed yesterday as per mail from TDW.
Issue Completed - ECN Capital Corp. 6.25% Cumulative Rate Reset Preferred Shares, Series C
I also see that they have taken the money from my account for shares allocated.
Q: I am surprised the 6.25% minimum ECN preferred share financing is still open as it's only $100M. Does this reflect badly on the issue? I thought a 6.25% guaranteed minimum was a good buy even if rates eventually rise.
Thanks.
Thanks.