RE:BPO preferredsI copied from "Prefblog" website a similar question and the associated answer. I hold the A and I shares. I'm thinking of selling half my positions.
"I assume that today’s buyers are speculating that the BPO shares will receive a credit upgrade when they are directly under the BAM umbrella post-privatization."
Answer "Nothing’s certain. Brookfield has a huge amount of consolidated debt … very little of which is ‘with recourse’ to BAM. If problems at BPO start threatening to sink the ship, I have no doubt but that BAM will throw it overboard.
What’s the ownership going to look like? BAM is doing this “with institutional partners”.