Brookfield Office Properties Inc T.BPO.PR.W

RE:Credit Risk, Interest Rates, Before Covid. The "BEST" times.

[SONOFFERGUS]

I don't know what to tell you CrazyCouch.

ZIRP was a thing.  If ZIRP is a thing again (which I don't believe), there will ofc be trouble for fixed resets as a whole.

As I've posted previously, IMHO BPO is a great hedge against the downside of lower rates for fixed resets.  You will recall that the high-quality series (high fixed spreads, minimum dividends) traded above par for a long time.  If BPO/BPY can manage some positive credit rating news as cost of carry drops and revenues and asset values increase, it's not CRAZY to think we get back there in the next few years.

I am way way overweight BPO.PR.E to protect against rates getting stupid low.  On price at close (and it just traded at its 52-week high of $14.07), it still  yields minimum 9.06% with plenty of upside at 7.04% fixed reset yield plus GoC5.  That's gonna look pretty damn good for investors having to find yield once cash is trash again.

Mr. Pref Market continues to bid up BPO.PR.C.  In terms of C's closing price of $16.81, Es are way cheaper on every metric and should close the price gap over time.

You should get off the couch and buy some!