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E Split Corp T.ENS

Alternate Symbol(s):  ENSPF | T.ENS.PR.A

The objective of the Class A shares is to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation through exposure to the portfolio. And The investment objectives for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions and return the original issue price of 10.00 Dollars to holders upon maturity. The Company has a portfolio comprised primarily of common shares of Enbridge Inc. Enbridge, a North American oil and gas pipeline, gas processing and natural gas distribution company the Enbridge Common Shares or the Portfolio and intends to purchase Enbridge Common Shares from time to time in the market or through participation in future public offerings by Enbridge. The Advisor believes that the Company offers investors an opportunity to gain exposure to Enbridge, one of the worlds largest energy infrastructure companies.


TSX:ENS - Post by User

Comment by Experiencedon Sep 05, 2024 4:37pm
98 Views
Post# 36210603

RE:ENB is breaking out

RE:ENB is breaking out Obscure....

I do share your optimism about the long run prospects for ENB and hence the implications for ENS.

That said, I do want to caution that many people overestimate the impact of central banks lowering interest rates.  One of the reasons, especially for large caps like ENB is that a great deal of their borrowings are long term bonds and preferred shares and so lowering interest rates don't really impact them except for that portion which is variable and possibly, notes coming due if the interest rate they refinance at is lower than what they were paying on the expiring bonds.

That said, there is some overall market impact since there is a relationship between long term treasury yields and the market P/E ratio.  BUT, Governments are also at record debt levels and most Government around the world are facing annual budgetary shortfalls and have to finance more debt each year.  This at some point will a negative impact on the market.

As my Mom used to say..."Don't count your chickens until they are hatched".
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