North American Financial 15 Split Corp T.FFN

FFN.PR.A - Why is this dropping instead of FNN class A share

[ClydeTower]

For the life of me, I don't understand why FFN.PR.A pref shares are dropping while FFN class A shares are holding their ground.

The prefs are trading at a discount AND have a "guaranteed" distribution near 7% and a redeemable value of 10$, while class A shares trade at a huge 45% premium with NAV now below the 15$ threshold essentialy guaranteeing the distribution will be cut next month.

Am I missing something?

[EdPaquette]

You're right Clyde.  The market is made of people.  People can be uninformed. 

[oldtrustguy]

I think it has a lot to do with interest rates climbing. In the NON split preferred here is what has happend going back to the date I used March 31 CPD  was 13.46 now 12.08 down 1.38  these two are down over two years dividends in just that time HPR  was 9.38   now 8.32   down  1.06 Here are a few split preferreds that I follow (same dates used) FFN. PR.A

[Eoj123]

I suspect this has a lot to do with it. 2022-04-22 19:47 ET - Prospectus Approved   The Toronto Stock Exchange reports that North American Financial 15 Split Corp. will list additional shares on the TSX. As stated in its prospectus supplement dated April 12, 2022, the company will issue up to $100-million of preferred shares and up to $100-million of Class A shares to the public

[Justreality]

Last month TD Bank sold a $800 million new issue pref to institutions yied was 5.75% reset was 3.31% google it use that as a bench mark