Canadian Banc Corp T.BK

BK unit nav to May 10 = approx: $20.35

[mouserman]

Spreadsheet now showing a gain of about 51 cents since the April 30 update. Last trade @ $10.90 means the premium is about 55 cents .  Gain since April 30th  is just a bit less than FTN ( 53cents) , and about  7 cents less than FFN ( 58 cents).
Much bigger % in US holdings in those 2 ..and BOTH trade @ a discount with a higher yield.

[flamingogold]

Excluding the prefs, FFN and FTN don't always pay. BK always pays.... always. That assurance is worth a premium for some.

[flamingogold]

The only exception has been the 2009 crash for e few months and 1 month during the worst of covid. Not a bad track record for those who prefer safety but don't want a GIC or money market fund.

[mouserman]

I owned  BK in 2020 and it didnt pay even tho it was above  the 15$ threshhold on the 15th of the month. Remember it quite clearly... That would never happen with DFN... It did not pay in April for the month of March, when the clear message  was being sent via fearporn, that the world was ending due to covid.

[flamingogold]

A rare anomaly in the history of BK distributions. Anyone holding for the last 15 years has done well here. Unlike many splits which degrade over tie, BK has a steady chart of higher lows and higher highs.

[flamingogold]

correction... tie = time

[deisman03]

Not enough of a premium to worry to much about yet. 

[Toppicks1]

You posted that you sold right before divi on the 26th of April did you chase your way back in here. Didn't see you post a buy. 

[deisman03]

Nope, I'm sitting on cash.  My buy/sell the swings doesn't work every time and I missed the window this time.  I'm up slightly over 18% so far this year, so if I miss one, I'm not going to get worried about it.  Right now, this thing is rising on speculative momentum, driven by the star of lower interest rates.  It's a great train to ride, until it isn

[flamingogold]

"If interest rates don't get cut, this vehicle will either get stuck in a range or maybe tank a couple of dollars." You predict only 2 scenarios but there is a 3rd. We get the cuts and the stock goes higher. Even if gets stuck in a range, that is fantastic for me, I still get the divy but someone swing trading loses out. So, the reality is, 2 of 3 scenarios work out for me and only

[deisman03]

That's a no brainer so I didn't think it needed to be mentioned.  There's a fourth, if the rate cut is minimal, just to appease the minds of the plebes, the stock goes higher and many duck out along the way, which will drive the price lower after a couple of months.  It's a standard "bear trap" model.  GLTA the good folks here

[flamingogold]

When central banks pivot, they don't do just one and done. We will see successive cuts. When all is said and done in the loosening cycle it could be between 1-2%. The low rates of covid are not coming back but we won't just get 1 or 2 cuts and that's it.

[flamingogold]

And I will add... this is the reason why all indices are notching all time record highs.