RE:RE:RE:RE:RE:Redemption of 3.55% CDN notes It doesn't make sense - i did some calculations a number of posts ago and i think it was costing them something like $10m a year in dividends to canel commons vs preferred's.
a bunch of them reset their rates quarterly so they aren't even riding off the lag benefit built into the 5 year reset's.
the biggest issue though on a forward basis is that the risk premium to the 5 yr rate was market set under Husky which had a much higher risk profile than CVE on a forward basis. If these were a fresh issue the premium should be substantially lower. Heck, i am getting almost a 4% premium to the 5 year rate on the Series 7.
rad10 wrote: Effective yield of the series A preferred is now 3.9% with the shares trading under 17 dollars. Why are they not scooping up and cancelling the preferreds for a discount? Surely this is more effective than what they are currently doing combining NCIB common and redemption of notes?
What am I missing???
rad10 wrote: They really should NCIB the preferrred. Several trade at a substantial discount.
Oasisjunior wrote: Thats the way it is,,,, the next debt to be paid is always the most dangerous,,,, even if you were to pay other more expensive debt which you think you should do but it's always the next debt that get paid first regardless.