Brookfield Office Properties Inc T.BPO.PR.P

3.012%

[pierrelebel]

3.012%

Canada 5 year bond rate at 4:00pm today.  Simply amazing.

That is down from 3.76% three months ago.

Yet, if you take the time to check charts for the nine BPO 5 year reset preferred shares, they all trade at about the same prices they were trading three months ago (give or take a few cents)!

I would have expected better!

[Carena]

Hi Pierre, Thanks for all the interest rate commentary. 2024 is proving to be a very interesting year.  The finish to 2024 should be even more interesting.   I have no real deep conviction or where rates, the economy or the stock market is going at this point. I have been sitting tight and still very long the BPO prefs.   Have a great long weekend, Carena

[pierrelebel]

Good morning. The weaker than expected American job report released this morning may force the Fed to lower rates at their September meeting IF the August figures (scheduled for release September 6th) confirm the trend to higher unemployment. However, lower interest rate does not automatically mean higher price values for Canadian preferred shares. We are sticking to our positions in BPO.PR.T

[wynner]

Canada 5 yr 2.893% Looks like we may have to wait for the US to lower rates. lock in the GICs? 5 year mortgage rates coming down next week in Canada.  

[SONOFFERGUS]

Hi Pierre. Hoo boy, the move in interest rates has been fast.  Nice call on the Ts!  IMHO it has gone too far and will give back a good chunk when equity markets settle.  US markets were looking for an excuse to sell off and Intel's terrible earnings were the trigger.  I don't think that the US economy is broken or a liquidity crisis exists and we'll see a choppy

[pierrelebel]

Good morning SONOFFERGUS You wrote "... IMHO it has gone too far and will give back a good chunk when equity markets settle...." I totally agree. At one point Canada 5 year was down below 2.9%, now back to 3.0% or so. While one should not pay too much attention to day-to-day fluctuations, it is worth noting that both the Bank of Canada and the US Federal Reserve Bank managed a drop