RE:wow BBD c now at 11% yield...https://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=bdrbf
Considering where the long BBD bonds are trading (2034 bonds are yielding 8.1%), the market seems to be pricing in the dividend being suspended in the near future based on where BBD.PR.C is trading right now. At a nominal yield of 11%, grossing up leaves a current 14% yield for BBD.PR.C and significant capital appreciation if Bombardier can find some traction and generate positive free cash flow again soon. Barring a Bombardier bankruptcy, which is pretty unlikely given their improved balance sheet from the last equity offering, the winding up of capital spend on the CSeries, further potential funds from a transportation unit IPO or spinout, and probable government backstop, BBD.PR.C seems like a relative steal at this price. I'd obviously rather not see Bombardier suspend the dividend, but I'm pretty confident that Bombarider will be a going concern for a long time yet, unless it's sold outright, and I'm willing to wait and accrue that dividend, given its yield and the significant discount BBD.PR.C trades to its par value. It should be noted that when Bombardier suspended its common share dividend in the mid-2000s (for a couple of years), the dividends were not suspended on their preferred shares. GLTA