Canadian Banc Corp T.BK

BK unit nav to OCT 14 = approx: $19.87

[mouserman]

So BK ended up losing 15 cents off the unit nav since the  Sept  update. 
Commons now have a value of $9.87 and the last trade was @ $12.73.
That is a premium of $2.86 or about  28.9 %.
For what its worth i would sell BK with the high premium and lower yield, and buy FTN which trades at a premium which is about half ot BK.
The CAD banks were the biggest AND weakest part  of the fund .  FTN gained 32 in that same time frame, due to very big holdings in the US banks.

[Wahooo]

How do you assess the impact of inflation/recession fears? I own both FTN and BK because banks tend to protect their bottom lines in times like these. Their respective NAVs have a comfortable cushion for now which I like.

[deisman03]

No one is arguing that there is a comfortable cushion. It just doesn't make sense to hold onto an investment vehicle, even with a decent distribution that is still losing money in your portfolio, with an ever increaseing NAV and the payout is less than half when it comes to covering the loss.  You're better off to just have cash in your account and when a bottom appears to be in

[EdPaquette]

 There's been a few guys now saying that the payout could be dropped back down to 10%, and heres a few reasons that will never happen.   If you look at the original offering prospectus papers, quadravest intended the splits to have higher navs and lower percentage payouts for the fixed payouts like dfn and ftn.  BK was the outlier with a variable payout.   Split

[deisman03]

You're much more trusting than I am of the management of any corporation. Far to often, they're bobbing for apples in a water tub, with their game plans.  That doesn't seem that some are better than others. When push comes to shove, earnings and the ability to pay continuously at any rate, floating or set, will dictate what happens. Sometimes, that isn't nearly as visible

[deisman03]

Good info mouserman.