Brookfield Office Properties Inc T.BPO.PR.C

RE:RE:RE:RE:RE:I own a lot of one bank...

[pierrelebel]

Good afternoon SONOFFERGUS.

I am sure it feels very good this morning to get a big winner once in a while.

"It seems Mr. Market is a little skeptical that the deal will get done.  CWB $42ish versus $52ish announced value when NA only off 5%.  Hmmm."

If I were younger (and more aggressive) I would be buying CWB today/tomorrow in the $42 range, looking at a potential capital gain of 20%+ in the next six months (plus some dividends).

"Lower rates should be net positive IMHO."

They are if you hold the shares for income. As the interest rate market moves lower, so will the yield on BPO preferred shares - over time (not overnight) - resulting in some capital appreciation.  The higher the current BPO yield, the better the appreciation.

However, if you hold the shares expecting huge capital appreciation because of a reset at much higher rate, that will not work out too well. Already the Canada 5 year rate is down to 3.37% this morning and, I expect, will slowly move towards 3% by year end with the anticipation of lower rates by central banks in 2025.

"Maybe Canadians with big gains are selling before the taxes go up on the 25th?"

I do not think that is a factor.  How many Canadians (with expected taxable capital gains in excess of $250,000) have huge capital gains on those BPO preferred shares?

Enjoy your day with CWB. It makes up for days when things do not go so well.