Brookfield Office Properties Inc T.BPO.PR.X

Why Brookfield Office Property Prefers BPS trading at $25,

[CrazyTrader]

with yields around 5% while Brookfield Office Property Prefers BPO trading at yields 11% reset yields 15%  ????

If Brookfield isn't going bankrupt.... What's the "correct" yield for Brookfield Office Property Prefers?

5%   or  11%-15% ???

[SONOFFERGUS]

Something seems wrong there.  Are you right or is Mr. Market?  Dig in on what those 5% yielders are.  That yield screams structured or split share or retractable or the like, but over to you. Hint: IIRC, the US BPO complex -- all straight perpetuals, not resets -- yields 11% or so and BN prefs 7.5%.

[pierrelebel]

Good afternoon SONOFFERGUS You are correct. the BPO are retractable at any time by the holder which explains why they trade at or about retraction proce of $25. It only took my five minutes of homework to find the history of these shares Hint: May 26, 2014 The interesting part of the deal is that Each BOP Split Senior Preferred Share will be fully and unconditionally guaranteed

[SONOFFERGUS]

Nice.  So I can see 5%ish as fair for what is akin to a short-term commercial paper investment with DTC kicker.  Hmmmm. Thanks Pierre.