TSX:HSE.PR.B - Post by User
Comment by
RagingBull3on Jun 08, 2020 1:50pm
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Post# 31125061
RE:RE:RE:RE:Evaluating Reward Opportunity of Preferreds
RE:RE:RE:RE:Evaluating Reward Opportunity of PreferredsWith BoC rates at "Effective Lower Bound"....... There's plenty of room for rates to go up.... which will translate into Higher Yields, which will probably translate into Higher Share price......
If not, I'll take the higher yields and collect the dividend.... Thank you very much.
CanadianPreferr wrote:
Preferreds are a complex structure with many metrics to consider. Free Information regarding preferreds is very limited. In my opinion the reasos for the large spread between the 2L preferreds are.
. Fear of the company going bankrupt.
. Renewal Date of the preferred. (Due to current interest rate)
. Sturcture of the preferred ( Reset/Floating/Min Reset/Perpetual)
. Initial spread
. Investor inability to compare across all preferreds. This is the main reason l created my website.
I think there is good money to be made in preferreds. Of course you need to do your homework.