Brookfield Office Properties Inc T.BPS.PR.U

Credit Risk, Interest Rates, Before Covid. The "BEST" times.

[CrazyTrader]

Sonoffergus, your "sound" theory has one problem with it.  The PAST.   Before Covid, interest rates were rock bottom.   Where were Prefer ETF shares trading at?     I tell you, they followed them down, so did BPO Prefers for the most part.   

Past does not automatically predict the furture, but you have to ask yourself why would it be different.   If back 2013 to 2019 BPO share prices were down in the Teens while interest rates were going down and Credit on Brookfield shares high......  Why would it be different this time (shares go up while interest rates go down)?

Anyways, we are living in a upside down world right now, so maybe they will.

[SONOFFERGUS]

I don't know what to tell you CrazyCouch. ZIRP was a thing.  If ZIRP is a thing again (which I don't believe), there will ofc be trouble for fixed resets as a whole. As I've posted previously, IMHO BPO is a great hedge against the downside of lower rates for fixed resets.  You will recall that the high-quality series (high fixed spreads, minimum dividends) traded above par