Liquidated value of the preferred sharesDoes anyone know what might be the value of the preferreds if BBD were to liquidate? I assume the common shareholders would get wiped out. The reason I ask is that the preferred B's are holding up fairly well at just under $7 CAD despite the precipitous decline of the common shares. The par value is $25. So this works out to 28 cents on the dollar. I assume the preferreds rank below the bonds and other debt, still 28 cents on the dollar seems doable.
Interestingly, from my reading the prospectus, it seems that BBD could buy some of the preferreds on the open market for cancellation. Too bad they don't have any spare cash to act on this. Every dollar spent buying back would cancel about three dollars of debt.
Full disclosure, I hold the preferred B's with average cost above current levels