Q: I currently hold TD Bank series 12 preferred shares (TD.PF.G) and they are coming up to a five year anniversary upon which they can be voluntarily converted to series 13 preferreds. The series 12 have an initial 5.5% payout and their first reset is another 5 years down the road at the 5 year Government of Canada rate + 4.66%. The series 13 preferreds have a floating quarterly rate of the 90 day T-Bill + 4.66%. With interest rates likely to rise would you recommend exercising the conversion privilege? Also, would you happen to know the trading symbol for the series 13 preferreds?
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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.
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iShares Floating Rate Index ETF (XFR)
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Royal Bank of Canada Non-Cumulative 5-Year Rate Reset First Preferred Shares Series BK (RY.PR.Q)
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Toronto-Dominion Bank (The) 5-Year Rate Reset Class A First Shares Series 12 (TD.PF.G)
Q: I’m going defensive in my portfolio. What is your opinion of these 3 possibilities?