{"id":402,"date":"2006-12-14T23:22:56","date_gmt":"2006-12-15T03:22:56","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=402"},"modified":"2006-12-14T23:22:56","modified_gmt":"2006-12-15T03:22:56","slug":"sentry-select-40-split-income-trust-new-issue-of-preferred-securities","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=402","title":{"rendered":"Sentry Select 40 Split Income Trust : New issue of preferred securities"},"content":{"rendered":"<p>Sentry Select has just filed a <a href=\"http:\/\/www.sentryselect.com\/site\/sentry_select\/assets\/pdf\/Prospectus-E.pdf\">prospectus<\/a> for a new fund with some interesting twists.<\/p>\n<p>The fund is based on Income Trusts and will turn into an open-ended mutual fund in two years. The preferred securities are non-callable and will mature in two years &#8211; or, to be precise, December 1, 2008 &#8211; from the expected closing date of January 5, 2007 &#8230; which is just in time to mop up some RRSP money!<\/p>\n<p>The prefs will pay 5.25% and are provisionally rated Pfd-2(low) by DBRS. There will be no distribution to the capital units if this would leave the prefs with asset coverage of less than 1.5:1.<\/p>\n<p>Not the worst issue I&#8217;ve ever seen in my life, but 5.25% sounds pretty skimpy compared with what&#8217;s already out there &#8211; see the <a href=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2006\/12\/J6.pdf\">current &#8216;Interest Bearing&#8217; Index<\/a> for comparisons. Trouble is, of course, there just plain ain&#8217;t that many preferred securities around any more, and somebody who wants to buy a hatful &#8230; through a full-service brokerage and paying commissions through the nose &#8230; might well be pleased to get a big fill.<\/p>\n<p>Due to the short term-to-maturity on these things, I will not be adding them to the HIMIPref\u2122 database &#8211; unless forced to do so by outraged hue-and-cry!\n<\/p>\n<p><!--621e0082442922f693d67a13b7e28036--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sentry Select has just filed a prospectus for a new fund with some interesting twists. The fund is based on Income Trusts and will turn into an open-ended mutual fund in two years. The preferred &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-402","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/402","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=402"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/402\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}