{"id":19975,"date":"2012-10-11T14:25:05","date_gmt":"2012-10-11T18:25:05","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19975"},"modified":"2012-10-11T14:25:05","modified_gmt":"2012-10-11T18:25:05","slug":"press-a-new-direction-for-fixed-income-investing","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19975","title":{"rendered":"Press: A New Direction for Fixed-Income Investing"},"content":{"rendered":"<p>Noreen Rasbach of the <i>Globe and Mail<\/i> was kind enough to quote me yesterday in a story titled <a href=\"http:\/\/www.globeadvisor.com\/servlet\/ArticleNews\/story\/gam\/20121010\/SRBACKINGAME1010ATL\">A new direction for fixed-income investing<\/a>:<\/p>\n<blockquote><p>The huge benefit to investing in preferred shares is their tax advantage, according to James Hymas, president of Toronto-based Hymas Investment Management Inc. and a preferred-shares expert.<\/p>\n<p>&#8220;The great distinction between preferred shares and long-term corporate bonds is that preferred shares give you entitlement to the dividend tax credit &#8211; which for most people has the effect of multiplying your return by a factor of about 1.3.&#8221;<\/p>\n<p>Investors who want to take advantage of the dividend tax credit need to hold their preferred shares in a taxable account, not an RRSP.<\/p>\n<p>Preferred shares provide holders with a dividend and a stated dollar value per share when it is redeemed by the company. The prices of the shares trade up and down.<\/p>\n<p>Often, Mr. Hymas said, investors are attracted by a high yield and buy preferred shares, and a short time later the issue is called for redemption at a far lower price than they paid for it &#8211; &#8220;and they end up with a very poor return or even losing money.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Noreen Rasbach of the Globe and Mail was kind enough to quote me yesterday in a story titled A new direction for fixed-income investing: The huge benefit to investing in preferred shares is their tax &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-19975","post","type-post","status-publish","format-standard","hentry","category-press-clippings"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19975","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=19975"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19975\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}