{"id":43633,"date":"2022-06-20T10:12:02","date_gmt":"2022-06-20T15:12:02","guid":{"rendered":"https:\/\/prefblog.com\/?p=43633"},"modified":"2022-06-20T10:12:02","modified_gmt":"2022-06-20T15:12:02","slug":"research-splitshare-credit-quality-prefletter-version","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=43633","title":{"rendered":"Research : SplitShare Credit Quality (PrefLetter Version)"},"content":{"rendered":"<p>The innumeracy of regulators knows no bounds, so they permit <a href=\"https:\/\/www.quadravest.com\/_files\/ugd\/78f11d_fac8a96653c842809ac1c27bf38c5d40.pdf\">statements in prospectuses such as<\/a>:<\/p>\n<blockquote><p>In order to achieve the Company&#8217;s initial targeted dividends of $1.20 per Class A Share per annum, the Company will be required to generate an average annual return on the Portfolio of 8.58% if the value of the Portfolio is maintained intact until the Termination Date.<\/p><\/blockquote>\n<p>This calculation goes beyond the word &#8216;average&#8217;. Due to <a href=\"https:\/\/prefblog.com\/?p=19972\">Sequence of Returns Risk<\/a>, the required long term average will increase with the price volatility of the underlying portfolio, as the targeted dividends will be a significant cash drag on the company &#8211; just like a normal retirement portfolio!<\/p>\n<p>In this essay, which was later distilled into a <a href=\"https:\/\/prefblog.com\/?p=18684\">shorter version for popular appeal<\/a>, I look at the determinants of credit quality for SplitShare preferreds.<\/p>\n<p>Look for the research link!<\/p>\n<div align=\" center\" =\"\"=\"\"><a href=\"http:\/\/www.himivest.com\/media\/prefLetterApp_1012.pdf\"><img decoding=\"async\" src=\"http:\/\/www.prefblog.com\/images\/ad_splitCreditQuality_PL.gif\"><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The innumeracy of regulators knows no bounds, so they permit statements in prospectuses such as: In order to achieve the Company&#8217;s initial targeted dividends of $1.20 per Class A Share per annum, the Company will &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-43633","post","type-post","status-publish","format-standard","hentry","category-publications"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/43633","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=43633"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/43633\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}