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. |