Brookfield Office Properties Inc T.BPO.PR.A

B.O.C. Interest Rate Announcement

[pierrelebel]

July 25, 2024

09:45 (ET)

On eight scheduled dates each year, the Bank of Canada announces the setting for the overnight rate target in a press release explaining the factors behind the decision. Four times a year, Governing Council presents the Monetary Policy Report: the Bank’s base-case projection for inflation and growth in the Canadian economy, and its assessment of risks.

I expect interest rate to drop 0.25% with positive results on all preferred shares - within a week or two.

[pierrelebel]

Correction - Should read July 24th

[SONOFFERGUS]

Hi Pierre. I agree with you on both points.  GoC5 has fully priced in 25bps IMO.  Future cuts will be measured and the policy should settle in a rational spot -- 300bps? -- by the end of next year absent some sort of global crisis.  If GoC5 stays put, we'd be back to a normal yield curve.  I don't think long bonds have much room to strengthen given higher yields for

[pierrelebel]

Good evening. "...what will GoC5 be with a 4% policy rate?" I still expect Canada 5 year to trade between 3.00% and 3.35% by December 1st when the "A" are reset. I do not see below 3% this year or next.

[wynner]

CA5Y-CA is at 3.3% as I write this. Down 1% from last year. We call for 2 more cuts this year and a few next year too. Total of 2% maybe. BPO.PR.W is based on Prime rate in Canada and there has been 0.5% so far. Another 1.5% to go. Today's cut will not effect the dividend and maybe not even the cut last month. At least not a 0.25%.

[wynner]

Declared. 0.315 +div tax credit. Latest dividend 0.315 Yield 13.66%   Stock detail Detail value Previous close   9.15 52 week range

[pierrelebel]

Good morning wynner. Thank you for the information on "W" floating rate preferred shares. I took a good look at those BPO.PR,W (floating rate, not reset). It may be of interest to some investors but they are not for me. Less than 4,000,000 shares are outstandig and very few trade (only 600 shares traded all of last week on the TSX; 2,500 the preceeding week). I would find it

[wynner]

Happy weekend pierrelebel. BPO.PR.T is a good one to own for the reasons you explained very well. I have the W and the X right now. But I the only difference to me between W,X and Y is the price to buy or sell.  I sold the Y to buy more X and W. If any of the 3 sell off after the div I will add more. IF the price shoots up suddenly I will sell and pick up some T maybe. I like to compare

[SONOFFERGUS]

Hi Pierre. I have posted previously about the curiious trading levels of floaters generally.  Suffice to say I like them for current yield and for potential appreciation when BPO credit risk improves as rates decline.  As wynner notes, the "good" issues of 70% prime floaters trade in the low teens and BPO floaters trade at a big discount to those issues, so if Mr. Market comes