Most analysis, both here and elsewhere, is focussed on security selection. Now that the September edition of Canadian Moneysaver has been published, I can now release this more general, portfolio level, analysis published in their July/August edition.
Look for the research link!
I’ve discussed CPD in this blog in the past and I’ve also written a more formal article about it. Now that the July/August edition of Canadian Moneysaver has been published, I can now release this analysis published in their June edition.
Look for the research link!
A new edition of Canadian Moneysaver has been issued, so I can re-publish my article from the penultimate publication!
Many readers will be familiar with the “hockey stick” pattern of option returns – if not, don’t worry, I explain it in the article. This paradigm is pretty practical for those people (and practitioners) perplexed by the price pattern of perpetual preferreds.
Look for the research link!
As a bonus, I have also made available the spreadsheet I used when writing the article.
The new edition of Canadian Moneysaver has been published, which means I can publicly release my column from the last one.
This article seeks to remind investors that the dividend tax credit is not the only factor to be examined when investing. When we look at retractible shares issued by operating companies, we find that the Yields-to-Worst available are not sufficiently high to be an easy choice over comparable corporate bonds, even after allowing for the effect of lower taxation rates on dividends.
Which is kind of a no-fun conclusion to draw for a preferred share specialist, but I wouldn’t want anybody to get angry with me after figuring it out for themselves!
Look for the research link!
Preferred securities are issues that are similar to preferred shares in most respects – except that they pay interest rather than dividends. While conditions for issuance of these shares are no longer as favourable as during their vogue, a number of issues still exist and may be of interest to RRSP investors. I’ve written an introduction to this type of preferred share:
Look for the Research Link!
The current portfolio evaluation for the draft Interest-Bearing index is here.
As many will have noticed, Operating Retractibles, as a group, are getting more expensive all the time. In many cases, they are trading with a negative yieldToWorst and even when these worst-case-scenarios are positive, they yield less than Canadas after tax while retaining all their corporate risk.
The preferred shares issued by split-share corporations may be of interest to many who want a retractible investment … and I’ve written an introduction to this type of preferred share:
Look for the Research Link!
The cogniscenti will have noticed that Malachite Aggressive Preferred Fund has been known to hold a lot of these.
I have uploaded portfolio evaluations for the draft HIMI Preferred Indices for December 29, 2006, for the Operating Retractible and Split Share indices.
Update 2007-11-22: See Split Share and OpRet Yields for some updated yield numbers and a fascinating discussion in the comments.
There are three major Preferred Share funds currently trading on the Toronto Stock Exchange : DPS.UN, PFD.PR.A and PFR.UN
There was an indication on the Financial Webring Forum that some people, at any rate, thought the dividends paid on these funds were secure and sustainable … so I wrote an article calculating just what would happen to the pay-outs on these funds as the underlying portfolios got called away and replaced with current-coupon issues.
Look for the Research Link!
I mention credit ratings a lot on this blog … you have to when writing anything about fixed income! For those in need , I wrote an introductory article:
Look for the Research Link!
This article was in the August, 2006 edition of Advisors’ Edge Report.
The short answer to the title question is “NO!”. For the reasons …. click the link!
Hat tip to Financial Webring Forum for providing rationales for floating pref investment!
Note added 2006-10-04: There is a typographical error in the table “DBRS Downgrades”: the issues GT.PR.A, STQ.E and SXT.PR.A should be in the “Split-share” column – they are not perpetuals.
The new (October) issue of Canadian Moneysaver has been released, so now I am releasing the column that was in the old (September) one: Dividends & Ex-Dates.
This article attempts to make sense of the terms “Ex-Date”, “Record-Date” and “Payment Date” for investors who don’t necessarily deal with these concepts every day, but need to understand them in order to calculate preferred share yields correctly.
Look for the “Research” Link!
