8 Responses to “August 30, 2022”

1. Joel A says:

   August 31, 2022 at 11:37 am

   Great site Jim and while I am logged in THANKS! Have to add that you are obviously a thoughtful man who can operate from that thought base…a welcome atmosphere these days!
   So, MFC.PR.I tender open until Sept 2. Just received a brokerage notification:
   Manulife Financial Corporation has offered to exchange its outstanding Non Cumulative Rate Reset Class 1 Preferred Shares, Series 9 for its Non Cumulative Floating Rate Class 1 Preferred Shares, Series 10. Share for share.
   I am supposing that means NO CALL.
   Cheers! JA

2. Joel A says:

   August 31, 2022 at 11:42 am

   Add on: Supposing that means a 3 mo GOC above 1.64 + 2.86 for next five years at my income rate of 4.5%. Probably not a bad diversifier?
   What you think? JA

3. skeptical says:

   August 31, 2022 at 11:50 am

   PPL.PR.O extended.

   https://www.pembina.com/media-centre/news/details/135548/

   Reset at 6.164

4. Joel A says:

   August 31, 2022 at 11:55 am

   Sorry, I did the math wrong:
   New 5 year reset = 6.17% approx. fixed for five years.
   First new div on 3 Mo = 6.02 approx. with adjustment every quarter.
   The eternal question: What will the short end portend over the next? five years?
   This one may be close. Interested in your take.

5. Joel A says:

   August 31, 2022 at 12:08 pm

   skeptical:
   Have some PPL.PR.O too. Thinking that short rates don’t invert for that long, that often, so over five years, stay with the 5yrGOC. I am interested to see investor BEHAVOIR, IF the 3 MoGOC jumps at some point and see if the Float issue prices follow.
   Perhaps the 5YrGOC would drop at that same time, an interest rate arbitrage, but that would MANDATE that I speculate, actively watch and decide to trade and the fool’s game: to be right every step of the way. The two rates are so close right now.
   Will prob stick to the 5yrGOC reset. I do not want to confuse genius with bravado.

6. PPL.PR.O To Reset At 6.164% « PrefBlog says:

   August 31, 2022 at 9:11 pm

   […] Thanks to Assiduous Reader skeptical for bringing this to my attention! […]

7. jiHymas says:

   August 31, 2022 at 10:00 pm

   The eternal question: What will the short end portend over the next? five years?

   The eternal answer: this is market timing, a useless, expensive exercise in fortune telling.

   You should seek to hold the issue that makes the most sense for your portfolio, in terms of total return and portfolio risk.

   This does not necessarily end the question of ‘convert or hold’, because there may be trading opportunities. Depending on market conditions, one of the elements of the Strong Pair may well be priced significantly lower than the other once the issues start trading and it may well be worthwhile to try to get the expensive one with the idea of buying the cheap one on the market, taking out some cash instead of doing the exchange on a 1:1 basis with the issuer.

   See BAM.PF.I : Convert or Hold? for an example of this kind of analysis. I used to publish a recommendation on every single issue, but it got so boring with all the copy-pasting of exactly the same argument every single time that I thought I was going to die.

   Read the linked article, understand it, then update the spreadsheet I have made available and apply the analysis. If you want me to do it, I’m going to have to charge you, just to cover the cost of the extra life-insurance I’ll have to buy to cover my risk of dying!

8. jiHymas says:

   August 31, 2022 at 10:06 pm

   MFC.PR.I tender open until Sept 2. Just received a brokerage notification:
   …
   New 5 year reset = 6.17% approx. fixed for five years.

   I did publish notification of the reset: MFC.PR.I To Reset At 5.978%. Note that the reset rate is (almost?) always calculated 30 days prior to taking effect and that the conversion notice period is usally for the first half of the intervening time.