Brookfield Office Properties Inc T.BPO.PR.W

RE:RE:RE:RE:3.012%

[pierrelebel]

Good morning SONOFFERGUS

You wrote "... IMHO it has gone too far and will give back a good chunk when equity markets settle...."

I totally agree.

At one point Canada 5 year was down below 2.9%, now back to 3.0% or so.

While one should not pay too much attention to day-to-day fluctuations, it is worth noting that both the Bank of Canada and the US Federal Reserve Bank managed a drop of about 3/4 of a point in mortgage rates so far this year. This is what was needed to help make housing more affordable.

While short term rates have not yet moved in the USA, prime rate in Canada is down 1/2 point in two months. That is OK.

Overall I still do not expect the Bank of Canada or the US Federal Reserve Bank to drp their rates too far.  We all know what extremely low rates mean: INFLATION created by too much demand.
We have been there and we do not want to go back.

I also noticed this morning some strange posts that seemed out-of-context. Once I accepted to look at "crazy" posts I understood the stupidity of it all.  I am surprised to see him back on this board.  Last time I looked he had gone from the conservative world of preferred shares to the more fun HNU (Leveraged Natural Gas ETF) with shares down from $15 ro $3 in a year! In any case I do not intend to address his posts as he clearly does not have a clue. He is just looking for a fight.

Back to BPO 5 year reset preferred shares, everything seems to be working out as projected... although at a bit slower pace than I had expected. Still we will eventually see an average yield of 8%/9% on BPO preferred, resulting in a price of $19/$21 for BPO.PR.T