TSX:BPO.PR.A - Post by User
Post by
CrazyTraderon Jun 02, 2024 8:41am
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Post# 36068116
How the Price difference between the A's and T's close
How the Price difference between the A's and T's closeI don't know.
Share price of the A's gain?
Share price of the T's drop?
Share price of the A's and T's Gain but the A's at a faster pace?
Share price of the A's and T's Drop but the T's at a fater pace?
Come end of the year when the A's reset.....If it reset at 3.63% for it's 5ry rate, the A's share price should be virtually the same as the T's.
If higher, the A's share price should be higher.
If Lower, the A's share price should be lower.
All of these Prefers are basically the same 5yr rate + Base Rate = Dividend Rate.
Only difference is the Base Rate, which is FIXED....and when they reset.
Over the long term, when comparing, the 5 yr rate will be basically the same when averaged out.
It's only because of the unusual rapid, significant change in rates by the BoC is causing this arbitrage.
But Like I said.... Watching the A's and T's, you'll see how current yields, reset yields, and interest rates play out and their effects on share prices.
The price difference certainly won't widen to $3.00 as Pierre claims, not unless 5yr rate drops signigicantly when the A's reset or Shorts start to cover on the T's to push it's share price up.
All just my opinion/view/thinking/forcasting with common sense