TSX:BPO.P.A - Post by User
Comment by
pierrelebelon Jun 26, 2023 2:38pm
78 Views
Post# 35514947
RE:Those Preferred that Resetted at near ZERO and with
RE:Those Preferred that Resetted at near ZERO and with
"T's will reset end of this year. While the jump in yield is impressive, just try calculating some of the others!!!!! "
In my opinion the "T" offer the best value at this time, based on my expectation of interest rates over the next few years. Nothing "crazy" about it. The numbers speak for themselves.
And I am not a "nervous nellie' who buys or sells based on news. So HSBC announced today that they will be moving from Canary Warf in a few years once their lease expires. So what? Brookfield is a partner in Canary Warf but, overall, it is only a small fraction of all office space under management. Most of that specific building is owned by Qatar.
My expectations are for Canada 5 year to remain in the 3.7%-4.0% range between now and year end, despite one or two 0.25% rate increase by the Fed and BoC. The BPO.PR.T reset is based on whatever the Canada 5 year rate will be on December 1st, 2023. A small fluctuation over or under does not change the overall valuation.
I do not foresee any further increase in interest rates in 2024 or 2025, quite the contrary. With an economic slowdown (or recession) late this year or in 2024, both the Fed in the USA and BoC here will be pressured to lower rates somewhat with inflation dropping to the 2%/3% range.