TSX:BPO.PR.A - Post by User
Post by
hansretterathon Jan 22, 2024 4:04pm
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Post# 35839624
BPO Credit Risk
BPO Credit RiskBPO preferred shares are trading at yields of over 11% and yields to second call dates of 17-19%. Obviously these prices reflect their credit risk and the recent downgrade. Mark Carney is Vice Chair of BN.
If BPO defaulted on its relatively small $2 billion or so par value prefs, the pain would be felt by a lot of Canadian retail investors/voters. The press & non-Liberal parties would have a field day with Mark Carney's economic reputation if BPO had a credit event. I suspect he would be swayed to use parent company equity of other credit support to avoid this scenario.
This gives me some (false?) comfort. Anyone else have a view?