Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

Energy

TSX:HSE.PR.B - Post by User

Husky Energy Inc. cumulative redeemable preferred > Preferred A vs C, E, G

<< Previous

Bullboard Posts

Next >>

Comment by RagingBull3on Oct 21, 2019 5:08pm

91 Views

Post# 30252757

RE:RE:Preferred A vs C, E, G

It seems the "expected return" for HSE varies a fair amount as the share price varies a fair amount even though the dividend payout hasn't/won't change much.

The C, E, G went from $25 to $15s back up to $25 and then back down to the $16-$17s

What do you think is/was the cause of this?

pablo87 wrote: When A reset in march 2016 the tbill rates - on which the reset of this particular issue is based - were low. They're higher today. The reset is 17 months away, market seems to be expecting a rate higher than in 2016 but lower than today.

Worse case? If tbill rates went to 0 by 2021, and the expected return for HSE were 6.5%,
the SP could drop to $6.65 (0% tbill means the dividend resets to 1.73% x $25 = 0.4325 cents per annum).

Best case? rates stay the same as today, dividend could reset to 0.85 in which case @6.5% expected yield, the pref share could trade for $13.