Fairly interesting preferred share trade in the glode yesterday. theglobeandmail.com/business/artic… If you're not a subscriber the trade that some hedge funds are doing is pilling into Shaw's preferred shares. In the merger agreement, Rogers says they will pay Shaw $120M if Shaw redeems the $300M in preferred shares in June 2021 and the deal does not close.

When we do our preferred share research, we also provide a common share recommendation. One company we cover where the common shares look interesting is AltaGas. $ALA.TO #dividend #CPSR Many investors were burned by AltaGas in 2018 when it was forced to cut its dividend in half, which has led to the common shares being overlooked.

Many people think of preferred shares as a standard tool that is for income only, sort of like a flat head screwdriver. We see preferred shares as a multiheaded screwdriver with many different trades. Here is a thread on one. Investors are concerned about the fixed income portion of their portfolio with interest rates at all-time lows. How can they hedge the interest rate/duration risk?

With the Monterey Policy Report being released by the BoC there was one item that we found under-reported and has been something we have been following since the July report, the change in the neutral rate. For preferred share investors the lowering of the midpoint of the neutral rate from 2.75% to 2.25% is a significant blow. We do not expect the BoC to get back to the neutral interest rate and looking at recent history under Poloz the closet was a full 1% below the neutral rate

Everyone has been talking about Limited Recourse Capital Note (LRCN) are changing the preferred share market, with a rising tide lifts all boats. Here is a thread explaining our thoughts. The first thing to know is institutional and corporate bond investors are willing to sit in the same spot in the capital stack of a bank as a preferred share... but do it for less return. The reason is the preferred share market is illiquid for larger investors.