Brookfield Office Properties Inc T.BPO.PR.A

Here's a question every 5yr Reset Prefer shareholder should

[CrazyTrader]

be asking.....  Why are companies redeeming their 5yr reset Prefers?  Some even taking out Loans to do so!!  

Brookfield has begun NCIB and buying back their Prefers "permanent capital".   

Most logical answer would be that the 5 yrs Resets are going to cost the companies a lot more.... A LOT MORE!  

5 years from now it wouldn't surpise me if the 5yr rate is north of  5%+   even if BoC cuts rates.

There has to be a very good reason for companies redeeming.... Most logical answer would be that they will cost a lot more in the years to come.  

What else would cause companies to redeem at $25 on mass????  

Brookfield is one of the rare few that's doing NCIB instead of redeeming.... although they did mention TENDERING to try to get more shares.    

It almost seems like companies are in a panic to buy up the 5yr resets...... Really, some are taking out loans to do so.

[CrazyTrader]

Some will ask, what are you talking about, companies on mass redeeming.    Remember, companies can only redeem every 5 years....  So, only when Prefers come up for RESET does the company have an opportunity to redeem.   So, those Prefers issued with a HIGH Fixed Base Rate, will most likely be redeemed. BPO.PR.C    will most likely be redeemed, but first