Brookfield Office Properties Inc T.BPO.PR.A

2024

[Carena]

Good morning, I follow JC Parets and he had been bullish on the S&P 500 since 2020 and he turned negative later last year on the same and is now bullish commodities.....where is inflation going? I learned in economics 101 that you don't run deficits in good times. In North America, we run them all the time. And now our Deputy Governor of the Bank of Canada is saying we have a productivity "emergency" in Canada and if we don't fix it, inflation will be a problem. But its an election year in the USA. Should be a very interesting 2024. Carena

[Carena]

Good morning, Per CNBC this morning, Atlanta Fed President (who is a voting member in 2024) see only one rate cut this year, occurring in 4th qtr. Another guy I follow, Bob Elliott, was saying a while ago that he sees no Fed cuts until yield curve de-inverts.  Yield curve has been inverted for a record period now, something like 600 days. Have a great day, Carena

[pierrelebel]

Good morning Carena. Different folks have different opinion: Fed officials Loretta Mester and Mary Daly signaled Tuesday that three rate cuts are still likely for 2024, with Mester hinting that a cut in June is a possibility. “I don’t want to rule that out,” said Mester, who is president of the Cleveland Fed. Mester noted the inflation picture had not "changed very much" despite

[Carena]

Hi Pierre, I appreciate your thoughts as always. I am just throwing stuff out there....I really do not have conviction on the direction of rates, either way. And I agree, the overall consensus is for lower rates. Makes for an interesting 2024!  Lol. All the best, Carena

[Carena]

And Powell comments today: “We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2 percent,” he added. “Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy.” “Recent readings on both job gains and inflation have

[Carena]

Good morning, Well it looks like Powell saw this morning's jobs report before he made his comments earlier this week....lol. (i) US economy seems strong but job growth coming from lower wage areas or government (and its fiscal deficits) (ii) Immigration (open borders?) might be containing wage inflation which is good. I just do not know what the impetus is to cut rates in America. 

[SONOFFERGUS]

Good morning Carena. I jumped on BAM hoping for bonds to rally hard today.  Didn't happen ofc but going up anyway. I need to roll my sleeves up on BAM, but I read a report that was pointing to a huge win if bonds rally -- the value of its carried interests will rocket and Mr. Market is not valuing that. Hmmm.

[Carena]

Hi there, Good to see you are winning today anyway...why did you think bonds were going to rally hard?....a bad jobs report? I only own a small position in BAM but it looks good here if you ask me.  It should be a cash machine and is asset light.  It is amazing how we have seen the asset light/cash machine companies in America just ignore higher rates since the end of 2022.  

[SONOFFERGUS]

Hi. I have zero insight on any of these reports or how they relate to bond prices or stock prices or anything else.  I try to avoid them or trade around reactions.  Mr. Market tends to overdo it, as you know.  It looked to me like the market had its reaction yesterday afternoon so BAM payoff would be asymmetric.  It got $2+ cheaper so I figured it was time to load up on a

[Carena]

Hi again, Got it.  I see how you were thinking.  Thx. Carena

[Carena]

Hi there, I would say I am surprised by the market reaction today as the talking heads have been talking about gold, oil and commodities for the last month. I am not at all surprised by the CPI number. Nonetheless, Brookfield Group companies (BN BEP BIP BBU BAM) all down today in 4-5% range. To repeat, Brookfield is highly interest rate sensitive.  Brookfield is diversified across

[SONOFFERGUS]

Good morning. Price action in the UST10 was insane given how likely that inflation would come in hot.  Leveraged longs had to unwind fast.  Whipsawed this morning by a better-than-expected PPI.  Good times! IMHO there's going to be a fight over the "pyschologically important" 4.50% level on the 10 -- a credible move below will get equiies back on track. 

[Carena]

Good evening,  Nice to see our BPO prefs holding up (so far) in this suddenly very choppy market.  BN and its core subs still getting smacked around though. The text below is from a Financial Post article today: “An added wrinkle for the BoC is the stickiness in U.S. inflation,” Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets, said in a note. Though the

[pierrelebel]

Good morning Carena. Yes all nine BPO 5 year reset preferred share issues have been relatively stable in the last several weeks on very low volume - well below average.  I have seen no evidence of buyback in the last four to six weeks. It appears inflation is still a problem - mostly in the USA - preventing lower interest rates at this time by central banks. The Canada 5 year bond rate

[Carena]

Hi Pierre, You are a man of conviction!  I too am still in the "Life is Good" camp.    But interesting that Powell was speaking again today, pushing rate cuts farther out. They are working very hard to reset expectations.   Have a great day, Carena