Brookfield Office Properties Inc T.BPO.PR.Y

Which witch is ......

[wynner]

I am deciding which is best . (for me).

BPO.PR.W,Xand Y.  = 13.4% floater. Probably reduced 2% to 11.4% in 12 months.I own all 3.
BPO.PR.T = 11.4% for the next 5 years. I own.
BPO.PR.A = 8.4% increasing to 11.4% in 12 months time. I don't own.

Seems X,Y,W is better using "time value money" theory. Higher for now. Probably stay higher unless rates are drastically cut.

Back to the rocket launch.

[tylerreddick]

I bought the "T" shares a while back, and had a good reason why I chose those. Problem is, I forgot what that reason was, although it is most likely still valid. Love the very high yield.

[wynner]

They scrubbed the launch again. I would like to say that if Tal is correct and Tiff cuts Prime by 2.25% by next year.......that will be a booster rocket for all variable loans accross the board. Not just real estate companies , but utilities and infrastructure.......etc.

[CrazyTrader]

I've never paid attention to the Floater.... But I think you are correct, the Floater are probably the best pick in a Higher for Longer rate enviorment.    But they will take a hit if rates fall. I didn't like them because they didn't have a "base rate".    You don't know your minimum dividend yield.      I know I'll be getting

[SONOFFERGUS]

"They will take a hit if rates fall" needs a citation. If the rate goes down but the odds you get paid go up, what should the price action be?

[CrazyTrader]

Thank you Sonoffergus!    You are correct, share price might go up! I guess I should be more clear.  Dividends on them will take a hit if rates fall.   Of coarse, they will too on Reset, but not until Reset.  The T's have 5 years to go before next reset. All BPO shares may go up if rates fall. So Crazy.  

[CrazyTrader]

Context of that post was Dividends.....  But I can see how one might think "take a hit" would refer to share price.    Very understandable.    Thank you Sonoffergus for clearing that up.  

[CrazyTrader]

As they are all BPO Prefers (floaters and reset)....   In Context of which Prefer and Rate cut.... Rate cut will have "equal" effect of probablity of being paid....  The diffence is DIVIDENDS.    Floater will feel the effects immediately. 

[SONOFFERGUS]

Correct, CRAZY, but only a part of the story. What credit risk is implied by current prices?  How will  that change? Not an easy thing to quantify. First cut: The $10 discount to par for Ts -- having reset recently at GoC5 close to spot rate)  is the best indication of the additional risk premium (that is, in addition to the fixed spread) Mr. Market requires for the fixed resets