TSX:HSE.PR.B - Post by User
Post by
RagingBull3on Nov 29, 2020 11:25am
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Post# 31996671
There's a BIG DIFFERENCE between NOW and BEFORE
There's a BIG DIFFERENCE between NOW and BEFOREin the Previous Cases where Company Settled and Preferreds settled. That is.... WE are sitting at "Effective Lower Bound" on rates as stated by Bank Of Canada, while Preferreds Yielding over 7% !!! and paying Juicy Dividends.
That means basically, Dividends amount/rates will most likely go up from here!
If you look at what's happening to the Prices of Bonds (they gone through the roof)..... You can expect that to happen to the Preferreds (To all perferreds across all sectors).
Because you see what's going to happen in the future if BoC keeps rates low is... short term there will be a Boost to the Economy, but then the Party will be over and we will be LOCKED into low rate environment. This will cause Earnings across the market to decrease..... Then Dividends will be cut, and Yields on commons will drop across the entire market.
Debt, or anything offering fixed rate will skyrocket in price. Debt has already taken off. Preferreds will follow.
Many Preferreds trading over $25 (redemption limit) already. Ask yourself why is that!
All just my opinion