Best and Worst Performers: June, 2008

I have been posting a lot lately about how horrible June has been for preferred shareholders – see, for example, Party Like it’s 1999!, New Trough for Preferreds? and Market Timing?. And I will be posting more! Without wishing to rub salt into the wounds of other preferred share investors, this month has been very interesting from an academic perspective … but for now, the table of best and worst performers in June is a sufficient tale of woe.

These are total returns, with dividends presumed to have been reinvested at the bid price on the ex-date. The list has been restricted to issues in the HIMIPref™ indices.

Issue Index DBRS Rating Monthly Performance Notes (“Now” means “June 30”)
BNA.PR.C SplitShare Pfd-2(low) -13.35% Asset coverage of just under 3.6:1 as of May 30, according to the company. Now with a pre-tax bid-YTW of 8.48% based on a bid of 18.05 and a hardMaturity 2019-1-10 at 25.00. Compare with BNA.PR.A (6.00% to 2010-9-30) and BNA.PR.B (8.63% to 2016-3-25).
GWO.PR.H PerpetualDiscount Pfd-1(low) -12.18% Now with a pre-tax bid-YTW of 6.18% based on a bid of 19.76 and a limitMaturity.
GWO.PR.I PerpetualDiscount Pfd-1(low) -10.51% Now with a pre-tax bid-YTW of 6.02% based on a bid of 18.82 and a limitMaturity. This was a top performer in May, so at least part of this drop is simply reversion.
CM.PR.J PerpetualDiscount Pfd-1 -9.95% Now with a pre-tax bid-YTW of 6.43% based on a bid of 17.52 and a limitMaturity.
BNA.PR.B SplitShare Pfd-2(low) -9.24% See BNA.PR.C, above. This was a top performer in May, so at least part of this drop is simply reversion.
BCE.PR.G FixFloat Pfd-2(low) [Review – Negative] +0.96%  
FIG.PR.A InterestBearing Pfd-2 +1.66% Asset coverage of just under 2.5:1 as of June 27, according to Faircourt. Now with a pre-tax bid-YTW of -1.05% based on a bid of 10.06 and a call 2008-7-30 at 10.00.
DFN.PR.A SplitShare Pfd-2 +1.80% Asset coverage of 2.4+:1 as of June 13 according to the company. Now with a pre-tax bid-YTW of 4.65% based on a bid of 10.34 and a hardMaturity 2014-12-1 at 10.00.
FAL.PR.H PerpetualPremium Pfd-2(low) +1.81% Called for Redemption in May.
BCE.PR.I FixFloat Pfd-2(low)
[Review – Negative]
+2.53% This was a bottom performer in May, so at least part of this drop is simply reversion.

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