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. |
This entry was posted on Wednesday, July 2nd, 2008 at 2:26 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
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.
[Review – Negative]
This entry was posted on Wednesday, July 2nd, 2008 at 2:26 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.