TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Oct 23, 2024 5:58pm
199 Views
Post# 36279321
RE:Interest Rates
RE:Interest Rates
Good afternoon carena.
"This is all good news for our BPO prefs and I think this has been a huge tailwind for the resurgence in the BN group stock prices."
I agree.
On the Canadian interest rate scene, I do not see "higher for longer". Canada 5 year has been trading down to around 3.0% recently and I expect it will remain in a narrow range of 2.5% to 3.25% for the next few years.
In the meantime BPO is doing OK and it would not surprise me if they manage to get a higher credit rating from S&P within the next year. This would create a rush by "shorts" to cover their losing bets, leading BPO preferred to trade with a yield of 7% or less by year end 2025 (that works out to $24 for BPO.PR.T).
By the way, that 7% is not a pipedream, It is what BPO preferred shares were trading for a few years before the pendemic.
My wife and I have maintained our oversized position in BPO.PR.T and do not intend to sell any share in the near future. They are a great investment currently yielding a tax advantaged 9.93% and more capital appreciation to come.
Good luck to all posters still holding.