{"id":1453,"date":"2007-11-13T12:37:55","date_gmt":"2007-11-13T16:37:55","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1453"},"modified":"2007-11-13T12:37:55","modified_gmt":"2007-11-13T16:37:55","slug":"toronto-star-preferreds-may-hold-bargains","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1453","title":{"rendered":"Toronto Star : Preferreds may hold bargains"},"content":{"rendered":"<p>The Toronto Star <a href=\"http:\/\/www.thestar.com\/article\/275833\">published an article<\/a> today on preferreds, pointing out:<\/p>\n<blockquote>\n<p>Banks&#8217; preferred shares at current prices are now yielding close to 6 per cent \u2013 much more than one can earn on bank deposits. The tax credit on dividend income makes yield even more attractive.<\/p>\n<p>That extra yield does not come without risk, of course. Prices of preferred shares could fall, as happened in May when there was a sudden rise in long-term interest rates.<\/p>\n<\/blockquote>\n<p>There wasn&#8217;t really a lot of meat on the bones of this story &#8211; but I will admit I&#8217;m pleased to see media exposure for the asset class! I have to say, though, that &#8220;close to 6 per cent&#8221; for banks&#8217; preferreds is a little overly enthusiastic.<\/p>\n<p>I should also point out that comparing the yield on bank prefs to bank deposits is a little fishy &#8211; bank deposits are not just senior to prefs, they&#8217;re insured; and there&#8217;s a certain amount of term extension involved when withrawing deposited money to buy a discounted perpetual! Nitpicking, perhaps, but I always get worried when comparisons of this sort are made &#8230; there are many retail investors who will figure that if 20% exposure is good, then 40% must be better and 100% is best of all!<\/p>\n<p>Hat tip: <a href=\"http:\/\/www.financialwebring.com\/forum\/viewtopic.php?t=105322&#038;start=89\">Financial Webring Forum<\/a>.\n<\/p>\n<p><!--4f1cefcb4484625004d905550053c127--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Toronto Star published an article today on preferreds, pointing out: Banks&#8217; preferred shares at current prices are now yielding close to 6 per cent \u2013 much more than one can earn on bank deposits. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-1453","post","type-post","status-publish","format-standard","hentry","category-miscellaneous-news"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1453"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1453\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}