RE:RE:RE:"Preferred Shares" are usually shares that haveHi CanSiam,
Couple of comments:
(i) I do not think the BPO prefs are trading on the speculation that the BPO prefs might get redeemed anytime soon but that would be a nice bonus.
(ii) I do think think the BPO prefs have popped for the exact reason you discuss....the thinking that these BPO prefs fall under BAM's credit rating now. If that is the case and I am not sure, then why not compare a BPO.PR.G to a BAM.PF.J which trades at par $25, and therefore there is still lots of room to run for the BPO prefs, relatively speaking.
(iii) I do recall reading somewhere at some point that the BPO public securities had been effectively treated as BPY instruments and that is why BPO was allowed to have minimal disclosure/reporting. If this is true and the privatized BPY gets afforded the same treatment from BAM, then these BPO Prefs are absolute gold in the BAM structure. So in regards to your point on BPO being a sub of BAM and subject to their credit rating (and effectively viewed equal to a BAM pref), I think this would need to be explicitly and legally established first.
Despite all my ramblings, my long position in BPO prefs is based on the conviction that BAM (ie Flatt) view these BPO prefs just as sacred as any BAM pref, irregardless of legal form.
Hopefully this makes sense. Lol.
Vette