TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Apr 16, 2024 11:42am
146 Views
Post# 35991635
RE:RE:2024
RE:RE:2024
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 remains around 3.7% - up slightly from 3.6% in early December 2023 when the "T" were reset. On the other hand, I still expect that rate to be in the 3.0% to 3.25% range by early December 2024 when the "A" are scheduled for reset. With an election in early November, I cannot imagine the Fed raising rates this year.
In the meantime I expected the "T" to trade in the $16-$17 range by late April - that is not happening as the market seems to be happy with a 11.3% yield on those shares. I am still puzzled by the large number of shorts still outstanding and growing despite the high yield.
On the other hand life is good and returns are high.
Good Luck to all/