North American Financial 15 Split Corp T.FFN

Prefs continue to trek higher

[flamingogold]

With the US about a week away from dropping the hammer on tariffs and the repercussions, the odds of inflation coming back are increasing. This would force central banks to pause on further rate cuts and in fact may lead to a reversal.  This is helping to move the prefs up. Another all-time high today.

[navgod]

The exact oppsite is true! Higher interest rates should put downward pressure on pref values -- the same as bonds. For split share prefs the only interest rate market that matters is under 5 year canadas.

[flamingogold]

True, it's an inverse relationship. The rising share price is currently pushing the yield lower. However, investors may be willing to pay more for the prefs today in anticipation that the payment rate/yield may get a bump up later this year.

[NoShoesNoShirt]

Today I sold my bloated overpriced FFN.PR.A and bought the bargain FFN. Because the S&P500 went down 5 days and turned positive. The American banks rose lots .

[flamingogold]

I hold the prefs as insurance against a wider market meltdown. The commons will stop paying much sooner than the prefs ever will. In my case at least for the prefs, I am more interested in an income stream than a capital gain.