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Canadian Banc Corp T.BK

Alternate Symbol(s):  CNDCF | T.BK.PR.A

The Companys investment objectives are (i) to provide holders of Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate plus 0.75%, with a minimum annual rate of 5.0% and a maximum annual rate of 7.0% (ii) to provide holders of Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate plus 2.0%, with a minimum targeted annual rate of 5.0% and a maximum targeted annual rate of 10.0% and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012.


TSX:BK - Post by User

Comment by anubis44on Jun 17, 2022 7:38pm
133 Views
Post# 34766115

RE:RE:RE:RE:Brutal

RE:RE:RE:RE:BrutalThe same thing happened to me back in Oct. 2018. I heard that interest rates would be going up, and stupidly figured that could be good for banks. Like an idiot, I bought some FTN and some FFN, as both had already pulled back to what I thought were reasonable levels. The problem is that for the modest gain in profits banks might temporarily get, the MUCH more immediate and dramatic implication is for a slow-down in lending, and therefore, likely less over-all profits for the lenders. Remember: the financials always move down with the S&P 500 when the S&P 500 has a correction. They are not independent. If you want to buy financials, you'd better be pretty sure that the S&P 500 has hit a bottom, and is finally moving up from there, first on daily, and then weekly time frames.

After all, if interest rate increases slow down the economy, and people simply decide not to buy, or even can't afford to buy as many houses and cars, it only makes sense. The most important lesson I ever learned about the split-funds. They are tons of fun when the market has crashed and you know they'll double or triple within 12-18 months, and you've locked in a ludicrous dividend yield, but when you see the S&P 500 teetering on the edge of a big drop, you'd better get the hell out of the split funds, most especially the ones who's dividends are at real risk of being cut again. With only a very few exceptions, split funds are not something to hold for the longer term. If you look at mult-year charts of them, they all have downward-sloping price trends.
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