Brookfield Office Properties Inc T.BPO.PR.A

RE:Business Structure and Liability

[BrainNugget]

BPY operates as a separate legal entity from BN /BAM. This means they are not responsible for the debt and liabilities of BPY. 

However, as the sole owner  and  parent company, BAM/ BN would still be affected by the bankruptcy of BPY. Interest payments and preferred dividends have seniority over Partnership Units' dividend distribution to BAM. Thus, a default would practically mean the loss of a valuable source of income.

I used to own 4500 BPO.PR.T, sold them all starting @ $19.00 all the way to $13.00, just about broke even if I account for the divvy over the 15 months I held.
Switched to other prefs, some regular low spread resets, some minimum rate resets and also some floaters.