North American Financial 15 Split Corp T.FFN

Preserve your capital

[EdPaquette]

FFN.PR.A is priced at 9.96 with a nominal value of 10.  LFE.PR is 10.29 with the same nominal value, but it pays less dividends. If there's a recession almost every class a will stop paying, and losses will be huge.  The only class a that may pay right through is BK.

[oldtrustguy]

Are you saying the FFN money would be safer in FFN.PR.A  or do you think the preferred shares will drop some more.??? Thanks

[EdPaquette]

FFN.PR.A is underpriced and a very good deal here. It's very odd for it to be under 10.

[oldtrustguy]

Thanks for the reply. I do have a lot of the preferred FFN.PR.A I thought FFN would have had an offering  because it is so overpriced over the NAV. Someone said that they can't do a offering  because the preferreds are trading under the NAV value. thanks again.

[Eoj123]

What's up with FFN.PR  ?? I don't get it, why the discount?

[lordmuck]

It got hit on low volume and then stop sales kicked in. The only other thing is that since interest rates are on the rise the difference between what the preferreds pay now and what one can get on a GIC  does not seem as enticing as when GIC rates were lower.  For my money though these things are a bargain today.

[flamingogold]

GIC rates may be increasing but remember they come with non-redeemable chains and shackles whereas FFN prefs can be sold in seconds for just a few bucks. Also, depending on the account used, GIC interest income is fully taxable and may not be as advantageous as income earned through corporate distributions.

[flamingogold]

Who loves the game of RISK. FFN trading for a lofty 38% premium and likely below the threshold to pay yet only down a cent? The prefs which pay regardless though selling off. We are approaching that time in the market when panic and FUD take over common sense again. VIX at 32 so we are getting close to max pain unless we are rolling over into a bear market. Either way, the prefs will pay, FFN

[Eoj123]

Thank you gentlemen