Canadian Banc Corp T.BK

Nice to see BK

[Donwaan]

... get some upward momentum, hope it continues. BK has the best safety margin as well as holding only Canadian banks with their stronger oversight than in the US.

[tinkvid]

I would say on Dec 14 was a clear short squeeze/cover. Yesterday I bought the Preffs just above their low but we'll see what the end of the year brings.

[wolverine99]

The Preferreds seem to have stalled after the mid November offering @ $9.80. Could this be on some anticipation the Divy and Yield will fall as Interest Rate cuts are implemented given this is a Floating Rate tied to Prime? Any insight is appreciated.

[tinkvid]

I see Brompton Capital Advisors, Inc.(SPLT) initial position prior to June 1, 2023 in the 9.90-10.00 range....I took positions in 8 of the splits listed in their holdings at depressed prices and was happy to see Brompton introduce SPLT. There could be some revisions to the Yield but the base rate of 5% I believe remain the same.  Pre financial Crisis the preffs were solid, Post 

[mouserman]

Yeah they are floating , but are not adjusted every Q, only yearly. Long time before you need to worry about a lower yield as BOC has  not even guessed at when they might cut interest rates.

[navgod]

The floaing rate formula for BK.pr.a is only adjustable on the maturity/extension date ie Dec/2028. If short rates finally start dropping this rate will become even more relativiy attractive. Except for the summer of 2020 BK.pr.a consistently trade above $10 and nearly $11 during the low rate environment.  Bk.pr.a is a bargain at these prices GLTA

[mouserman]

Ok thanx for that NAvgod, i was under the impression that it was similar to FFN and FTN where they can adjust it yearlay. I havent read that  BK prospectus. Guesstimate on BK UNIT NAV here is about $19.84 if they have reduced the cash postion at all.

[wolverine99]

Yes you are correct, this was a change they announced back in September, one has to read the Prospectus more carefull, lol! The Preferred will hopefully recover back to the $10 level over due course.

[mouserman]

Last month they sold a pile of preferreds @ $9.80 so it is normal for it trade below that price for a bit. I suspect will get back to 10$ in the New Year.  Not sure if underwriters got cheap shares in the offering.

[mouserman]

Actually not true that BK holds only CAD  big 6 banks, they have minor holdings in 5 US banks, MS, JPM, BAC , GS and C. If you look at doucments on Quadravest site, you can see  As of AUG 2023, the US holdings  add up to about 16% of the NAV.