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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: Good morning,
I have noticed that my holdings in the above shares have declined to about the issue price of $25 in the last couple of weeks. I understand that BIP.PR.D is due to reset in January 2022 and ALA.PR.K in February. The price movement suggests to me that the companies plan to recall these shares but I haven't found any statements that they intend do so. It would make sense if they did as they will otherwise have to continue to pay a 5% dividend for the next five years. Do you have any information on this? I'm thinking that if I can buy more shares at $25 or less I will get one dividend and then a return of my $25 or I will continue to get 5% on those shares for the next 5 years.
Read Answer Asked by Ken on December 03, 2021
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: Question on minimum rate reset and simple rate reset Preferred shares:
Minimum rate reset preferred shares lists distribution rate as higher of Minimum and the BOC 5 year rate +x%. The questions are:
1. Can they change distribution rate before the next reset date?
2. can they change distribution rate formula at the time of the next reset date
3. At the reset date, can they swap with other preferred with lower distribution?
4. I suppose they can recall and pay the face value at the next reset date
5. I understand company can not reduce or stop distribution on preferred shares until they cancel dividend on their common shares, correct?
6. is it possible to have any other fine prints on the prospectus that makes them more riskier investment?
Read Answer Asked by Naren on April 28, 2020