August PrefLetter Released!

The August, 2023, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

PrefLetter may now be purchased by all Canadian residents.

Until further notice, the “previous” edition will refer to the August, 2023, issue, while the “next” edition will be the September, 2023, issue scheduled to be prepared as of the close September 8, and emailed to subscribers prior to the market-opening on September 11. Prefletter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: My verbosity has grown by such leaps and bounds that it is no longer possible to deliver PrefLetter as an eMail attachment – it’s just too big for my software! Instead, I have sent passwords – click on the link in your eMail and your copy will download.

Note: There have been problems lately with corporate eMail protection systems that substitute “safe” links for the links sent in the eMails; the problem being that the “safe” links do not work and an error is generated by my software. To avoid possible problems and delays, please subscribe through an eMail account that is not “protected” by such software.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter eMails sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository – there are some hints in the post Sympatico Spam Filters out of Control. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

Note: There have been other scattered complaints that double-clicking on the links in the “PrefLetter Download” email results in a message that the password has already been used. I have been able to reproduce this problem in my own eMail software … the problem is double-clicking. What happens is the first click opens the link and the second click finds that the password has already been used and refuses to work properly. So the moral of the story is: Don’t be a dick! Single Click!

Note: Assiduous Reader DG informs me:

In case you have any other Apple users: you need to install a free App from the apple store called “FileApp”. It comes with it’s own tutorial and allows you to download and save a PDF file.

However, Assiduous Reader Adrian informs me in the comments to the January 2015 release:

Some nitpicking for DG:
FileApp costs $1.19 in the Apple Store.

But Adrian2 now advises:

Well, as of now, FileApp is free (again?).

3 Responses to “August PrefLetter Released!”

  1. Uub says:


    I’ve been trying to understand the pref share market lately. ENB.PR.H most recently reset and is now yielding ~8.5%, 100bp+ above the common stock yield, 400bp+ above GOC-5. Seems this is a tad high? Is this due to expecations of higher for longer yields and/or the bearish lack of interest state in this market by larger participants?

  2. stusclues says:

    “I’ve been trying to understand the pref share market lately.”

    You’re in the right place. Spend a lot of time reading the posts here and definitely read the comments too.

    If you’re keen on ENB, then you want to be buying ENB.PF.G or ENB.PF.E. If you can understand why, then you are starting to understand the value available in fixed resets right now.

  3. jiHymas says:

    Is this due to expecations of higher for longer yields and/or the bearish lack of interest state in this market by larger participants?

    “Higher for longer yields” should be good for the preferred share market, since it is dominated by FixedResets, which will reset to higher yields in such a scenario – at least for a while. However, I take the view that in an efficient market the level of five-year Canada yields will have only a small effect, since it is spreads that matter, not absolute yields.

    I also take the view that the main thing that’s wrong with the preferred share market is past performance. Look at the track record! The index delivered a 0.90% annuallzed over the last eleven years! You don’t sell too many funds with that kind of performance! At least two good-sized funds have closed down this year and I have no doubt but that if I followed such things I would find more closures.

    I’ve been trying to understand the pref share market lately.

    So have we all!

    I suggest you read the July 2023 Performance Report for my fund to get an overview of what I think is important; then the post Yield Calculator for Resets: New and Improved! for a way to boil down whatever assumptions you’re making into a single yield number comparable across issues; and then Implied Volatility For FixedResets: 2016 Edition for an explanation of why one will normally see different yields for issues from the same issuer; read through my other publications; and then to stay on top of things, get a subscription to PrefLetter for the low, low price of only $209.05 (including HST) annually! That’s right, only $209.05! Get your subscription now!

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