TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Nov 28, 2024 10:12am
28 Views
Post# 36335481
RE:Buyer pressure from redemptions
RE:Buyer pressure from redemptions
"ETFs as I understand it have to deploy the capital back into the asset class when they receive capital from redemptions...."
That is correct. However, because of their current poor credit rating BPO preferred shares are not eligible for most ETFs. The lower credit rating in late 2023 caused BPO preferred shares to drop substantially when they were unloaded by investors and ETFs.
My wife and I own substantial amount of BPO.PR.T (the current highest yield at nearly 10%) and expect to see $20/$22 per share by late 2025 or 2026 as we see potential improvement in the credit rating.
We also own ECN.PR.C yielding well over 9% and expected to be redeemed in thirty months.
I do not expect any BPO preferred shares to be redeemed as Brookfield likes to show that $2 billion as "capital" and can earn more than the dividend they pay.