TSX:BPO.PR.A - Post by User
Post by
CrazyTraderon May 31, 2023 5:27pm
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Post# 35473683
For past 10yrs+ Charts of Prefers were in Down Trend
For past 10yrs+ Charts of Prefers were in Down TrendThat's because interest rates were in a down trend, going to near zero.... So Preferrs were reseting lower and lower, so it made common sense that share prices would go lower.
But now we have the opposite, interest rates going up. Prefers will reset at higher rates, at least the ones that do reset like these (the 5yr reset prefers). So, it doesn't make sense for reset prefers to tank.
I don't know..... Like I said, I'm looking at 17%+ reset yield just at current 5yr rates.... and I think the 5 yr rates are going to hold if not go higher!! So I could be looking at maybe 20% yield.
All just my opinion/view/thinking/guessing