Seminar on PerpetualDiscounts: Thursday Feb 26, 6pm

Just a reminder – my seminar on PerpetualDiscounts will be Thursday, Feb 26 at 6pm

Questions are encouraged throughout the seminars, as well as in informal discussion at the end of the session.

Each seminar is two hours in length; coffee and tea will be served. The cost of attendance is $100, but a discount of $50 will be given to participants who have an annual subscription to PrefLetter with at least one issue remaining at the time of the seminar.

The seminars will be filmed for later distribution.

Advance registration and payment may be performed on-line.

PerpetualDiscounts: Theory & Practice

"PerpetualDiscounts" are currently the most common type of preferred share in Canada. They are characterized by:

  • No mechanism whereby the issue can be forced to redeem the shares
  • A fixed dividend rate
  • Call provisions in the issuer’s favour
  • a trading price below their call price

This seminar will review the theory of PerpetualDiscount evaluation, including:

  • Credit Quality
  • The embedded call
  • The importance of ex-Dividend dates
  • Importance of cumulative dividends
  • Investment characteristics relative to bonds

Examples of relative valuation in current markets will be supplied and discussed.

Attendence is limited; a reservation will avoid disappointment.

Location: Days Hotel & Conference Center, (at Carlton & College, downtown Toronto) Yorkville Room (see map).

Time: February 26, 2009, 6pm-8pm.

2 Responses to “Seminar on PerpetualDiscounts: Thursday Feb 26, 6pm”

  1. GAndreone says:

    Great Seminar James!
    Should the Modified Duration calculations use the after tax yield of the pref share?

  2. jiHymas says:

    Thanks! It was great to see you – and to get your valuable expertise in projector technology!

    You can use after tax yield with Modified Duration as long as you do so consistently, for both the absolute level of yield and the change. Since (presumably) both the numerator and denominator will be multiplied by the same after-tax fraction, the answer won’t change.

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