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Canadian Chat

There is plenty of discussion going on throughout the site on various Canadian securities so this post is for creation of a “Canadian Discussion” page.

This was requested by a reader and it is easy to do so we can do it quickly.

Hopefully this will be a page for those with Canadian interest will meet up.

786 thoughts on “Canadian Chat”

  1. Early Christmas:
    The first of a trio of Resets, NPI.C will be reset instead of rolling for another five years at 6.57%. Jumped from $23 to $25.19 on the news. Why did everybody wait?
    Two more coming this week:
    BAM.Z still at 21.15 NOW! I’ll bet on a reset too at my cost of around 1.66/21.15=7.2% What?! IG.
    IFC.A strill at $17.64 NOW! If reset will be near 6.9%, but lets hope for a call from this highly rated company.
    Three coming at end of Feb: MFC.J, PPL.F (end Jan) and IAF.I. I dare you to find ANYTHING like this quality in the US not protected and slurped up by Private Greed Hounds.

    1. Do you know where I could find a list of Canadian stocks and TSE symbols with corresponding OTC symbols? Thanks.

        1. It doesnt appear to show the CAD preferreds. I never do anything easy, but I have to use the OTC preferred stock screener under Canada only. And then type in the actual preferred series name into google search engine and it generates the actual CAD ticker with present price.

    2. IFC.PR.A reset at 4.841% on par = CN$1.21. Not called, Boohoo.
      I began buying the bulk at low prices in Jan and Feb ’20 and added at $19.51 as the reset got close this last June. Bad timing! Price today = CN$17.76.
      Still, my average price on three lots = CN$15.47 or now a 7.82% lock for five years, (this IS an NVCC too). Without the June ’22 add on lot my yield would have been 8.5%.
      Moral of the story with these resets for me is buy when the PRICE for these IGs are right and just collect the div = 6.0% since early 2020. Lean into a reversion to the mean by way of a ladder over time. It’s too hard to be a fortune teller. Even with the miscue buy this June my AVERAGE price was good. The US market is starting to get a number of good prospect FRRs too with some resets coming up in 2024.
      I prefer this sort of patient game and setting up a win-win-win situation, even if I get in my own way a bit, THAT is inevitable.
      In theory, I could cherry pick that last 300 lot in June and sell that lot for a short term loss, or the early ones for a long term gain. I’ll see price action tomorrow AM. By the way, tax lot designation is very easy to do at IBKR after the trade and before T+3 settlement, just go in and designate which shares after the trade executes.
      Next up BAM.PR. Z, BAM.PF.J, CM.S, PPL.PF.E(betting on a call here, jumped $0.46 today).

  2. Attached below is article from yesterday’s Globe & Mail – Globe interviewed the #1 advisor from recent poll who indicated he is seeing rate resets as the best opportunity right now for his clients. He can use his independence to look for the best opportunity for his clients which is exactly what we are trying to do too.

    Mr. LePoidevin has been recognized as the No.1 advisor in The Globe and Mail and SHOOK Research’s second annual Canada’s Top Wealth Advisors ranking.

    Globe Advisor recently spoke to Mr. LePoidevin about his current investment strategy and some of the qualities he believes make a good advisor.

    What’s your investing strategy at the moment?

    Our most exciting trade right now is the reset, fixed-floating preferred shares, which we’re buying at an average price of about 60 cents on the dollar.

    The dividends were reset about three years ago when rates were 0.5 per cent. The five-year is above 3.5 per cent, so the dividend increases are stunning. Not enough people are doing the math, but you can buy something that looks like it’s unattractive today, but in two years, you’re going to have a yield that might be approaching 9 or 10 per cent.

  3. Opp in near term resets? Check these out, a Thanksgiving side dish for you:
    PPL.PR.O already reset and trading LOWER. yield around 7.4% for five years! We’ll see whee it is trading tom morn.
    Other near term resets: The IGs: BAM.PR.Z, NPI.PR.C, IAF.PR.C, IFC.PR.A, for you pink sheet fans, ENB.PR.V (USD) resets 6-23, while you’re there look over D and F resets in 2023.
    NonIG: Ax.PR.E.
    Don’t know why people still do not get what resets mean by watching their actions. I sit and wait like a bishop for the late game.
    Even the Canadians who follow this stuff are talking about the investor disconnect. So it makes one question their own actions…okay!
    Happy Hunting and TG in Canadialand!

    1. Joel, Im stretching the time out to August next year reset, so I am gambling a bit here. But I have been small ball chasing down the Fortis Series G reset.
      Under the banner FTRSF OTC, chased 400 more today down to $12.03 ish and $11.98 USD. Thats about 6.6% present, and 8.62% if one wanted to dream of reset at present 5 year CAD yield.
      This is the company if one hasnt heard of it.
      A pitiful 2.13% adjustment but well below par price mitigates that to a degree. And of course its a bit of a playof King Dollar receding at some point down the road.

      1. Grid, Likewise, I own 690 FTS.PR.G in anticipation.
        Not related to Canadian Issues:
        Dipped into your Impalco Bond lead too after doing my own dd, of course.
        Interesting study and practical experience to work an account of laddered type bonds in this climate where so many coupons are so low. The cashflow will be minimal until maturity. At least prices are sub-par, some at crater levels compared to even 6 months ago. Staying with the curve of 2-4 year on the hump on this build out of a ladder. At some point SOMETHING will happen on other maturities. Maybe a slow approach that the Fed could consider over time may even the risk-playing field for Joe Investor.

        1. Joel, probably 6 months ago, I pulled the reigns back on many issues. Started toeing in very short duration up to 2 years. Good thing as I was early, ha. But I have my love floaters and resets. And since the future is unknowable I have been attacking more the long end lately. And likely too early also! But I bought a little more of my A1 senior secured Union Electric 2039 bond at 6.31% this morning. It was 160 earlier this year and bought around 121.

      2. Hi Gridbird, though I own a fair number of Rate Resets I tend not to pay much attention to them anymore. I own FTS.PR.F and FTS.PR.J but not G. I was just on Prefblog and it looks like the current reset rate is 4.393% ( 5 year Canadian Govt Bond Yield + 2.13%). Current price $CAD 16.59. I’d buy them on the TSX. I’m curious, is this more of an income play or a capital gains play for you?

        I have some $CAD in my US Brokerage account and thought about buying more BCE until I saw your post.

        1. Richard, Seems like you have an interest. Do you have the link to Yuriy’s Canadian Preferred Sheets in Google docs? It has been a god send to me.
          Also, the rationale for ME is screened this way:
          – Stay IG and high IG, always collect a decent div while you wait.
          – As the general insight, I have seen by price action is that investors look directly at CURRENT YIELD and do NOT do much imputing of the potential reset value until two dividends before the reset so about 5-8 months, watching Grid’s FTS.PR.G will be a good test of this. Only buy below par. If it gets called okay, collect a few divs and cash out with a CG, in the case of PPL it was about 10+% on my cost basis. Create a win (divs)-win (potential CG) -win (long term hold). Once you buy, and buy right, you should not have to do much but watch the circus unfold.
          – In this market the prices have stayed depressed and price action has not been true, look at the recent PPL.PR.O reset, higher yield but an even with a 32% increase of div to 7+% from 5.2%, the price went DOWN after the announcement., it’s at CN$19.92 today. Last I looked it is still hanging there. So price action is keeping resets OFF the radar of most lookers. DYODD.
          – IF I am willing to wait and see, then I allow the decision to make itself after the reset announcement since the Central Bankers are in attack mode and the reset can move rapidly, up or down within that 5-8 month window.
          – I always have a worst case and that is simple: If it is IG and the reset is puny say only a basic bump say 5.2% to 6.2% (20% jump), “Am I willing to stay and just collect the income?” THAT is what I am really after since retiring. I can spend or reallocate the divs as I watch the landscape.
          Let me know if you want the link to the sheets I mentioned above.
          All Ways the Best! JA

          1. Hi Joel….yes I’d like to get that link to Yuriy’s Canadian Preferred Sheets. I’ve only used prefblog and prefinfo.com as resources on resets. I’m still a novice but a bit smarter then I used to be and have learned to focus on the reset rate not the current yield.
            With both GIC and brokered CD rates so high now or should I say finally returning to normal, most of my attention and investments have been focused there. With the CPI numbers out today I suspect that absent any signs of major weakness in the labor market we could have 5% GICs and CDs before the end of the year.

            1. Richard: Take time and absorb these, good fun, , verify the details, save as Google Docs: The prices and change % update thru a feed, pay attention to color coding too. You’ll get it.
              – Resets Five year:
              – Fixed:
              – Fix to Float Three month:

              They are not updated with new issues of which there have been few,
              The resets may not be current either, but just look at the reset dates. It’s easy to go to the company’s site or first div, three months after reset. Pay attention to tabs at the bottom too.

  4. FYI — am now able to find a number of BBB rated bonds from 18 months+ onward all paying over 5%. Took advantage of this with some $$ just made available from redemption of BIR pref shares.

  5. Just got a very interesting written reply from TD (below) regarding the foreign security fees on the OTC. It differs from what we’ve thought and makes me think we can continue to invest in Canadian securities on their site.

    Thank you for writing to TD Ameritrade. My name is Isela and I’ll be happy to assist you today!

    Great question! The increased foreign security fee only applies to non-Canadian foreign securities on the U.S. OTC markets.

    Note there are no changes to fees or commissions​ on the following:
    Any security listed on a U.S. exchange: Remains at $0
    ADRs listed on a U.S. exchange: Remains at $0
    ​Domestic OTCs: Remains at $6.95
    Canadian securities: Remains at $6.95

  6. Having an issue with TD today with a perpetual from Brookfield Environmental (BEP).

    I have a position in BEP.PR.G a/k/a BRENF in the OTC market and they zeroed out my value.

    Hard to believe that the T in TD stands for Toronto….

    1. Greg,

      I was just notified TDA will charge an additional $44 commission on foreign stock trades as of Nov 3. This is in addition to its $6.95 commission.

      1. Dang George, I guess I wont be dabbling in Canadian OTC soon. Just been lately reestablishing positions in the Fortis Series F and G lately.

        1. Grid,

          I’m looking at adding to Enbridge Series 5 (EBGEF) which resets in March of next year at a spread of the US 5 year plus 2.82. Looks like I have a short window of time to pull the trigger.

          FWIW, the security has an attractive yield, at today’s 5 year, the coupon yield is 8.13%.

          1. 8% from an outfit like Enbridge would be a pretty sweet yield isnt it Greg. I had one of those US yield resets that jumped over $2 bucks earlier this summer when market bounced it on a sister ENB preferred call notice, and then I sold over $24. Im just playing around on the side with a longer term “King Dollar” anti trade being CAD has dropped so much against it. Mostly have more of the fixed 4.9% par series as its yield crept up to 6.2% so I bought a nice little slug for me.

            1. for CEO news past few days — Enbridge CEO announced his retirement today which will be effective end of the year. New CEO looks like a very good fit to carry on success of Enbridge. Last week the Bank of Nova Scotia retired and new CEO (already on the board) is not being well received. Was CEO for Finning which is an equipment dealer and company definitely underperformed under his decade of leadership. Globe and Mail has lots of coverage on both

          2. Greg – A couple of problems here: EBGEF won’t reset until 3/1/24 I believe so not next year… Also if it reset today it would be 5 yr Treas of 3.88 approx. +2.82 or 6.70% coupon.. So by coupon yield you mean the current yield at today’s price of 20.50, yes?

            1. 2WH

              Yes, I was thinking of the coupon yield at today’s price and not the par or liquidation price.

              Your math on the date is correct (and mine is not). The original date was 2019, and that means a reset in 2024 not 2023 as I hoped.

              1. I’m not quite sure what to make of it, but just using last prices on the US markets, not checking tsx.com, it’s interesting to see how EBGEF, EBBGF and EBBNF all seem to fall in line on a current yield perspective…. EBBNF already reset on 9/1 @ 5 Yr UST +3.15 and now has a coupon of 5.8579% (a reminder of just how fast interest rates rose since then). At trade today of 19.72 its current = 7.42%, EBBGF has coupon of 5.949% and will be next to reset on 6/1/23 @ 5Yr UST + 3.14. At 22.53 it has a current yield now of 6.66% but if it reset today, its coupon would be 7.02% and its current would be 7.79%. EBGEF currently has 5.3753% coupon and the 3/1/24 reset date. At 20.50 EBGEF has a current yield of 6.55% now but if it reset today its coupon would be 6.70% and its current yield would be 8.17%. I’m not quite sure what this says, but which one do you think is the most attractive??? Good arguments could be made for each one I suppose. I’m long EBGEF and EBBGF, but I think maybe EBGEF is the least attractive of the 3 right now..

                1. 2WH

                  I’m long EBBNF and EBGEF currently. I also have a position in the common (ENB).

                  I was hopeful for a higher coupon with the recent EBBNF reset but the 5 year yield dropped just as the reset happened. The position is in my after tax account and has a significant capital gain, so I’ll just continue to hold it and collect the 7.4% QDI.

                  The EBGEF position is in an IRA and with the new pricing from TD I feel like I need to make a decision on my holding very soon. Given the helpful information you provided above, I’m thinking of swapping (at least some) of the EBGEF for EBBGF as I like that the reset happens a year earlier (and at a higher spread) than EBGEF.

                  This is a great site.

                  1. I’ve been slowly moving money out of TDA since they don’t pay competitive rates for idle cash or sweep accounts. If the ENB preferreds are going to be subject to $44 addiitonal, I may just try to transfer those out without liquidating.. Trouble is my only other account is Fidelity and they won’t allow trading on any of them anyway…. I’ve got an empty account at ETrade… Maybe this will give me a reason to revisit them and see what’s new…. I own EBGEF in a jtwros account, not IRA

                    1. 2WR, May have this wrong, but didn’t Joel’s post indicate the charge applies to “non-Canadian” foreign issues?

                    2. alpha – yes it looks as though the charge is designed to NOT impact any Canadian issues be they OTC or not…. I had to stop and read it carefully to figure that out, but I didn’t the first time…. eyes aren’t as they should be, and maybe brain too.

      2. George

        Saw that news and have asked for clarification on their definition of ‘foreign’ stock trades. I guess it will impact the OTC trades of securities o the TMX (like Enbridge Series L (EBBNF)) but am unsure about ADR’s on the big board (like Telefonica (TEF)).

        I will post their response here when I get it.

        Very dumb move on their part.

      3. Received internal message in TD Am account conveying the same information – as of Nov 3 foreign security pricing will be increasing to $44 +$6.95.
        Note that $44 fee is now shown under “Exception Fees” tab at:
        Called TD Am; rep reached out to others to find out specifics.
        According to info relayed to TD Rep:
        – fee is only applicable to “sale transactions” of OTC foreign symbols
        – stems from Schwab
        Best regards, Green-n-Gold

  7. TC Energy vs Enbridge. I own Rate Resets of both but common stock of neither. Have been very reluctant to touch anything in Energy with two of the Three Stooges in power, Biden and Trudeau. Both companies seem to have their share of political problems in both the US and Canada. I’m not sure which common stock is the best investment in terms of long term support for their share price and safety of their dividend? Any thoughts?

    1. Richard

      I’m happily long ENB and I think it’s the better choice between the two you’ve mentioned. I suggest checking out their web site for the presentations as they have some great expansions in their future.

  8. PPL.PR.O and MFC.PR.I being reset. 6.17% and 6.16%.
    Here’s the crux of the interest rate arbitrage: Both offer convertibility at the same reset amount;
    -one on 5yrGOC fixed, five years
    -other on 3moGOC, adjust every divy pmt for five years.
    My choice answers the question and speaks about my demeanor as an investor. Should I speculate on short term rate spikes which everyone expects to go on forever AND do I know that the prices will follow the spike if I convert to the 3 mo?
    OR do I stick with the increase of 38% in the divy for 5 years and chalk it up to automatic inflation adjustment?
    Looking in the mirror for myself.

    1. Go with the 5yrGOC sure bet vs gambling on future rate hikes.

      In Gambling the only winner is the house.

  9. Any guesses on what the BOC will do on Sept 8th? And whether that will get us across the line to 5% GICs from the major banks?

    1. If you are gold leaf customer (Age 57+) you can already receive 5% GIC rates on 5yr term @ Canadian Western Bank. https://www.cwbank.com/en/investing/gic-rates

      CDIC insurance coverage is more critical. Not all GIC are guaranteed up to ($100,000) per institution. So you will need to spread the stash around if you are a high roller.

      Have already rolled the majority of my GIC stash to 1yr monthly paying @ 4%. Expecting next years rates to be spicy.

    2. Richard – from my recent readings of Globe and Mail articles can comment on a couple items. CIBC Economics latest read on BOC is another 75 bps increase and that’s it for quite a while. Certainly the increases so far this year have brought the real estate market to a standstill. With regards to 5% GICs we may have seen the peak in GIC rates as they are funded from mortgages and the longer term mortgage (bond rates) may have peaked as a recession is a likely scenario which would leak to a gradual drop in interest rates. Of course this is just the current reading of economic data and can change with new data. Not sure who said it but love the quote “economists make sheep look like rugged individualists”

  10. Recent CN Pref actions:
    ALA.PR.U a USD denominated issue that I believe was on the US OTC called.
    BIR.PR.A , oil/gas issue called.
    CPX.PR.I called.
    MFC.PR.I very good IG, reset at 5.978 an increase of div from 1.09 > 1.49 annually or +36%.
    The market get thinner and thinner as the privateers slurp up the public float.
    Conversions to Float Series are meager and not worth it compared to a new fixed rate.
    Comment: A very orderly and slower moving concept for fixed income strategy, BUT…if the REAL RATES for inflation we in the REAL world….

    1. yes pickings are getting slimmer and slimmer Birchcliff also has a series C they are redeeming (along with the A’s). Only good thing is the common which I also hold are really well with all their surplus cashflow. Similar situation for most Cdn small to mid cap oil and gas companies

  11. Much like CDs in the US since the Fed’s July 27th meeting, GIC rates in Canada seem to have plateaued out or taken a pause for the moment. The next Fed meeting is Sept. 21 and Bank of Canada Sept. 7th. As far as the US Fed Funds rate, its predicting a pause or rate cut by mid 2023. If the Market really takes that seriously in spite of the pushback by Fed officials, CD rates in the US have peaked….as counter intuitive as that sounds.
    Any thoughts out there on trying to hit peak rates before things slam into reverse? My focus is 5 year durations and non-callable.

    1. Richard, Just about all of us could answer your question with great conviction about what we think SHOULD happen with rates; maybe even when it will occur. However, sincerity, good intentions, intelligently-worded prognostications, models, trend lines and latest news blurb from some “inside” quant are simply no match for the randomness of the stock market, the wider economic market, the domestic and international news cycle etc. None of these tools of prediction are directly correlated with what WILL happen on a recurring basis. We’ve seen this over and over and over – even from the very many fabulous people on these pages over the years.

      Just a suggestion worth about a penny…don’t try to time the market. Instead, set your buy parameters, establish your bids then execute them spread over a period of time which works with your personal calendar. Counter-intuitively, if the preferred/fixed-income market shows price weakness/higher yields, celebrate and buy more. Further weakness, buy more again. You’ll be averaging down/increasing yield the whole way. My absolute best buys in preferreds, equities, real estate or other assets over the years have ALWAYS (that’s 100%) been when the exit doors are jammed. The April-June market swoon was one such opportunity. Bought small add-on amounts every single day. I mean – they were the best returns we’d seen in years. Heck even bought piles of the much frowned-upon PSA preferreds. They’re up near 15% in 60 days and carry an A3 rating.

      Another penny’s worth (that’s 2 cents total): Ignore the news, stick with investment grade (the risk/reward curve evidences that higher risk means lower return over time), start right-away (today) and remember none of knows with certainty what will happen tomorrow much less next quarter or next year.

      Best wishes.

      1. Thanks…I totally agree with everything you said….Canada has already exceeded my expectations with 4.5% GICs. I would have never guessed that they would be ahead of not just the US Banks but New Zealand, Australia and China. Its trying to see through the fog of mass media monotony in the US that has me tied in knots. But as you suggest even if one could see through that, there might be nothing to actually see.
        What used to be useable/actionable news has been so degraded it borders on tragic, whether its the destroyed WSJ, the nothing but opinionated Bloomberg News and TV and the once wonderful Financial Times.

  12. EBBNF NOT being called – https://finance.yahoo.com/news/enbridge-provides-notice-series-l-220000602.html

    Enbridge Provides Notice of Series L Preferred Shares Conversion Right and Announces Reset Dividend Rates

    CALGARY, AB, Aug. 2, 2022 /PRNewswire/ – Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series L (Series L Shares) (TSX: ENB.PF.U) on September 1, 2022. As a result, subject to certain conditions, the holders of the Series L Shares have the right to convert all or part of their Series L Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series M of Enbridge (Series M Shares) on September 1, 2022. Holders who do not exercise their right to convert their Series L Shares into Series M Shares will retain their Series L Shares.

    The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series L Shares outstanding after September 1, 2022, then all remaining Series L Shares will automatically be converted into Series M Shares on a one-for-one basis on September 1, 2022; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series M Shares outstanding after September 1, 2022, no Series L Shares will be converted into Series M Shares. There are currently 16,000,000 Series L Shares outstanding.

    With respect to any Series L Shares that remain outstanding after September 1, 2022, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series L Shares for the five-year period commencing on September 1, 2022 to, but excluding, September 1, 2027 will be 5.85790 percent, being equal to the five-year United States Government treasury bond yield of 2.70790 percent determined as of today plus 3.15 percent in accordance with the terms of the Series L Shares.

    1. 2WH

      Thanks for keeping us posted on EBBNF.

      Looks like ENB was able to target this to the recent drop in the 5 year interest rate. Looking over the past month, it’s been as low as 2.7 and as high as 3.5

      1. Greg:

        Somewhat torn between the conversion, as I will be getting a 6.5% yield on my EBBNF holding for the next 5 years based on my average cost for the position, even after ENB “cherry-picked” the 2.7079% rate for the reset.

        Might be able to boost my yield even further if sellers show up that were in EBBNF only for the potential redemption at month-end (which has now crashed and burned).

        I assume you plan on not converting due to your low cost basis on EBBNF? If enough holders convert (93.75%), looks like we won’t have a choice.


        1. Rob
          I’m going to hang on to EBBNF for a while. It’s in an after tax account and I have a large LT capital gain ($10 per share) and 6+% is pretty good for a high quality issue.

    2. The reset did its job, an increase of about 17% in income. Goes to show: getting the trend right and buy price matters! For me, it becomes a slow game. I think the Reset rate securities are truly hybrid securities.
      Greg below, Enbridge got LUCKY with the drop in USGov5 over the last six weeks, maybe there is a trend that can be seen five years in advance? I’ve never been able to see the trend, but it may have gotten called IF it had been higher? Some internal cashflow guru at ENB is earning his pay nonetheless.
      PS: for anyone using Yuriy’s CN Pref Sheets, the US denominated Enbridge Reset rate securities have the Month/Day info inverted. Minutia. IT’s ALWAYS the last few entries! Use the Issue column to link to the prospectus. How handy!

  13. EBBNF – Enbridge has up until Aug 2nd or 3rd to announce whether or not they will call EBBNF on 9/1 rather than reset… Last quarter, On 5/4/22, ENB announced a call instead of choosing to reset SERIES J on 6/1/22 that had identical reset terms of + 3.15 over the 5 year US Treas as EBBNF. I’m not sure what exact day the next reset coupon would be determined but the 5 year was at 2.90% on day of announcement on Ser J, so right now with 5 year at 2.85% it’s touch and go whether the conditions for reset will be better or worse than when they chose to call in May… Mr. Market seems to be unsure what to expect with EBBNF closing at 23.71 on tsx.com as ENB.PF.U (last trade as EBBNF on Wed at 24.10). but if they call, it should be a nice quick 1 point plus jump up in price.. If it reset today, EBBNF would be @ 6% and I would suspect EBBNF would drop in price slightly, so EBBNF seems to be set up for a “Do you feel lucky, Punk?” kind of a week. Next in line for reset with almost identical terms would be EBBGF which will reset June 2023.

    1. 2WH

      Thanks for the post.
      I’m long both EBBNF and EBGEF and was thinking that the decision was a month later. I’ve been long both names for years (thanks Bob in DE) and have a large gain at these prices.

      While I’m expecting them to be called, I’m OK if they are not as the payments are quite secure.

      1. I’ve still got EBGEF thanks to Bob as well and recently took a small flyer on EBBGF which seems to be out of line low imho…. As opposed to EBBNF’s 4.96% coupon which will reset to 5 year Treas + 3.15 on 9/1/22 if not called, EBBGF already has a 5.949% coupon and will adjust to 5 year Treas + 3.14% beginning 6/1/23, yet its last trade on tsx.com was $23 vs EBBNF’s $23.71 So EBBGF has a considerably higher current yield now than EBBNF with almost identical terms for resetting only 9 months later….EBGEF resets another 6 months later than EBBGF. So what’s to happen regarding future calls will boil down to ENB’s view of future interest rate levels longer term and whether or not that view has changed from May when they announced the call on Ser J. .

      2. I do miss Bob in DE (sigh) — Just my luck I’m holding on US side ENBA which is basically flat but at least my CDN ENB pref is up as well as the common

      3. ENB just declared their quarterly dividends on all their 9/1 due preferreds – https://finance.yahoo.com/news/enbridge-declares-quarterly-dividends-213000432.html including EBBNF Ser L….. Last quarter, they made the declaration on May 4 and simultaneously made an announcement calling Ser. J….. I see no second announcemnt for L right now… Don’t know if that means for sure they’ve decided not to call.. They still have a few days left to decide before the window closes for 5 years…

        1. 2WR:

          Question – why does ENB only have a few days to decide on whether to call EBBNF? Can they not wait right up until the reset day of 9/1/22 and then give 30 days notice with the final preferred dividend at the higher rate?

          Based on today’s 5-year Treasury yield of 2.85%, interest costs on EBBNF for ENB would jump to $2.4M per year from $1.983M – or $417K per year. $2.1M more in payments over the next 5 years. They would be foolish not to redeem it if they have the available funds ($400 million USD)?

          If the Fed does a surprise interest rate hike in August, ENB’s interest costs might really shoot higher on this thing.

          1. The call feature on their resets is a little bit different than a normal preferred…It is not continuously callable after the specified date – it is callable on a single day every 5 years…. That day is 9/1 of this year. They have to give a minimum of 30 days advanced notice if they’re to call, so that means they would have to give notice by no later than PROBABLY 8/2, though it could be 8/3 depending on how they figure..

            1. 2WR:

              Understood…ENB published the following in their 3/31/22 10Q:

              “On May 2, 2022, we notified holders of our outstanding Cumulative Redeemable Preference Shares, Series J (Series J Shares) (TSX: ENB.PR.U) of our intention to redeem all US$200 million outstanding Series J Shares on June 1, 2022.”

              EBBNF is twice the size of that $200M issue. Maybe that is the issue here for them. ENB had $413 million of cash on their balance sheet as of 3/31/22, but they have close to $5 Billion available on their various credit facilities, including $1.5 Billion on their US-based line.

              There has been a 30 basis point drop in the 5-year Treasury yield in the last month, so I can see why they are wavering a bit. But they are still rolling the dice here if rates shoot up between now and 9/1/22. The original dividend on EBBNF was only $.25/quarter for the first 5 years.

              I’m actually hoping they don’t call it, as I have too much cash to put to work already. UMH+C was my second largest position. Shed a tear when that one was redeemed today as that was a tough good-bye.

      4. Greg, Usually the announcement is 30 days before the reset (final x-div date for the last period of the term), keep an eye on the parent’s site for announcement from Board.

  14. Once Again Canada shows the way. And of course is totally ignored by US Media.

    “The Bank of Canada hiked interest rates by a full percentage point, a surprise move that supercharges efforts to withdraw stimulus amid fears four-decade-high inflation is becoming entrenched.
    Governor Tiff Macklem raised the central bank’s policy rate to 2.5 per cent in a decision announced Wednesday in Ottawa that warned of more hikes to come. The 100-basis-point move is the largest increase since 1998. Markets and economists were anticipating 75 basis points.”

      1. Re GICs: Please be aware that the issuers of GICs are managing an investment pool. GICs are not segregated into a ‘hold to maturity’ which pays off that pool. The good thing is that the NVCC rules in Canada prob protect the GIC, but try to get an answer from a regulator!
        The investment pool will be managed to throw off capital gains and income spread…in other words you have to trust the manager to skim gains and incremental income from some OTHER investment instrument SOMEWHERE. That’s the same thing a self managed account tries to do, but keep it all. That’s why I always refer to my accounts as My Personal Annuity. Think like those external managers. Here’s an example since we are on a sharing investment site: GWO.PR.Y, nine years of call coverage, step down in 2025 beginning at CN$26, 4.5 coupon, currently being thrown away at under CN$19, yield = 6%, very high IG.
        Just another idea! Happy Investing.

        1. Joel – completely agree the investment manager will not be offering higher GIC rates without maintaining a spread.

          Spicier GIC offerings from Alterna Bank / EQ Bank / Oaken Financial (Home Trust Company) that are tier 2/3 mortgage lenders are available.

          1. and with CDIC (ie. Govt) insurance covering $100K from any member bank even more reason to go for the highest rate possible. My bank discount brokerage service just raised their 1 yr (cashable after 30 day) GIC rate to 3% from 2% this week so rolling over all my cashable GIC’s . Will just keep rolling them up as rates continue to rise this year

    1. I had to read in Canadian news about the Forward Party which has consolidated other parties into the third largest. WHY would THAT be broadcast in the US?

  15. tried to order a slug of versabank (VBNK.PR.A) due to huge rate reset.

    reset every 5 years at a level of 543 basis points over the 5 year Government of Canada bond yield

    brokerage is telling me it is now a restricted security. Have they recently been naughty.

    1. Nothing in the news that I have heard. I have few shares and just went in and set up a dummy order to buy more at market and it looks fine. (I have CIBC Investors Edge only because I am a bank retiree and get a slightly lower fee). When does it reset may pick up a few more.

      1. After calling brokerage and putting in an investigation last week. Tried placing a small order today and got a fill.

        VBNK.PR.A resets on October 31, 2024 (you still have time to sit on this egg)

        Got excited thinking Versabank got caught up somehow in the recent cryptobank calamity placing it on the do not fly list. Found out a more mundane clerical error occurred.

      2. CB, I have studied that the higher rate resets tend to BEGIN to move about two divys BEFORE the reset, especially those below par where if they are called then you ONLY get the CGain + two divs.
        Signed, Rehabbing the basement in 103 temps

  16. I don’t see much coverage in the Globe & Mail financial pages on CDN pref shares but noticed one today I thought I’d share (as I don’t profess to be an expert and rely upon more experienced investors for pref ideas).

    David LePoidevin, senior portfolio manager and senior investment advisor at LePoidevin Group with Canaccord Genuity Wealth Management in Vancouver

    Right now, he finds Canadian rate-reset preferred shares compelling. These investments pay a fixed dividend until its reset date, typically in five years. The new payout is a spread above a five-year Government of Canada bond.

    In a rising-rate environment, “dividends are getting raised dramatically,” he says.

    Enbridge Inc. Preferred Series D ENB-PR-D-TO
    , whose rate resets next March, should then be yielding “well over 7 per cent on the dividend raise.”

    And Fairfax Financial Holdings Ltd. Cumulative Floating Rate Preferred Series J FFH-PR-J-TO
    , whose dividend is reset quarterly based on the three-month Government of Canada Treasury Bill rate, is also seeing its payout rise, he adds.

      1. Though the BOC has a lot more courage then anything we see from the US Fed…..I’ve taken the approach of not wanting anything that matures or is callable between 2023 and 2027 if I can avoid it.
        I’m not even half convinced yet that a Central Bank recession in either country is a given but I can easily see Central Banks reversing course by late 2023 and be back to scrounging for yield. I’d rather lock in an acceptable yield and not have to worry about anything for the next 5 years. I’ve been buying only 5 year GICs and Call Make Whole Corporate Bonds in the US.

        1. Richard, can you share a site or resource where I can research call make whole US corporates? Finding it hard to get started. Thanks very much.

          1. That’s an interesting question, R… I don’t know of a site for that either, however, make whole calls are pretty common in the corporate bond market… You’re much more likely to find them used in 1k bond issues than baby bonds. On Fidelity, it’s pretty easy to see as part of the description whether or not a particular bond has a make whole provision, but I don’t know of a way to search via make whole as a criteria…. once you see that a bond has a make whole provision, the details can be had right there only another click away in the Fidelity fixed income area and, if not, then you can track down the prospectuses in FINRA bond site normally.

  17. FYI — 5 year GICs are now available @ 5% for the first time in many years from Oaken Financial (covered up to $100K deposit insurance)
    Please note that effective Friday, June 24th, 2022, we will be increasing the interest rate for the Oaken short-term and long-term GICs as noted below:
    Short-term GICs:

    180 Days GIC – 2.25% (currently 2.20%)

    Long-term GICs:

    1 Year GIC – 4.05% (currently 3.75%)

    18 Months GIC – 4.30% (currently 4.00%)
    2 Years GIC – 4.50% (currently 4.30%)
    3 Years GIC – 4.60% (currently 4.40%)
    4 Years GIC – 4.65% (currently 4.45%)
    5 Years GIC – 5.00% (currently 4.45%)

    The Bank of Canada has hiked its key overnight interest rate by 50 basis points to 1.5% and will also continue quantitative tightening.
    Nice to see a Central Bank that is grounded in economic reality and not a mismanaged roadside circus like the US Fed and ECB.
    Five year non-redeemable GICs at 4.25% is music to my ears.

    1. Rolling over previous 5yr has been a welcome surprise. Waiting on 5.5-6% before unloading stocks.

      Never had a GIC draw down.

    2. just picked up a $5000 Brookfield Properties (BBB low) short term bond maturing July 3/23 @ 4.13% There is also a Brookfield Property bond maturing Mar 1/24 showing at 4.80% in my CDN discount brokerage fixed income dept. I will those all day long for security right now.

      1. CB, do you have any opinion on the relative merits (or demerits) of Brookfield Property vs. Brookfield Finance vs. Brookfield Infrastructure vs. Brookfield Renewable? Should they all be viewed as separate beasts?

        1. Hi Bur
          truthfully I’ve never sat down and poured over the financials of the various Brookfield entities. I do hold a number of the common and prefs in the various companies and am basically relying on BAM as the overall parent to ensure they will all stay viable. In this case buying a bond I figure at least I’m moving higher up the foodchain in a worst case scenario. Mind you I keep a wide assortment of holdings so no one issue going under will impact me more than 1% or so. FYI– I copied the specifics below for the bond I mentioned in earlier post.

          MaturityMarch 01, 2024
          CUSIP #11286ZAC8
          Credit ratingBBB(low)
          Payment frequencySemi-Annual
          Instrument currencyCAD
          4.83% Semi-Annual,
          4.89% Annual
          Face value$5,000.00
          Price (per 100)$99.1685
          Accrued interest$57.14
          Exchange rate1.0
          Estimated cost$5,015.57
          Settlement dateJune 06, 2022

        1. Richard here is a GIC article from today’s Globe & Mail with some other ideas. Myself I am using a 1 yr cashable GIC (after 30 days) and getting 2% – so if/when rates go up after the 30 days I cash in and reinvest at higher rate. Have two years worth of my required RIF payments in this product so if markets tank I don’t have to sell my equities

          Rob Carrick: GICs with an escape hatch for the indecisive investor

          Investors willing to lock money down for one to five years are being rewarded with GIC rates not seen in years.

          But what if you don’t want to commit for at least a year, or you think you may have a need to access your money? A few players in the market for guaranteed investment certificates have an option for you – the cashable GIC.

          There’s little point considering cashable GICs when you can get comparable returns from high interest savings accounts, which cost nothing and offer complete liquidity. You can transfer money in and out any time on your phone or computer. Today, though, cashable GICs are available with rates that beat many high interest accounts.

          Oaken Financial’s cashable one-year GIC has a rate of 1.7 per cent after 30 days and 2 per cent after 90 days. Royal Bank of Canada recently offered a special 1.8 per cent rate on a cashable one-year GIC, which compared to a posted rate of 0.75 per cent. Both of these GICs were available for non-registered accounts.

          A couple of points about cashable GICs – they’re not always offered by the alternative banks and credit unions with the best rates, and there’s a significant rate penalty for having the option to cash out.

          Non-redeemable GICs are hard, if not impossible, to cash out of before maturity and you should expect a penalty fee if there’s a way to exit early. GIC issuers are strict about this because they precisely match funds taken in from GICs with money lent out for mortgages and other purposes.

          The best non-redeemable one-year GIC rates are in the 3 to 3.65 per cent range. Why consider cashable GIC, then? Because rates on high interest accounts aren’t that competitive for the most part.

          A rate of 1.5 per cent is widely available from savings accounts offered by alternative banks, and a few go up to 1.7 per and 1.75 per cent. But the best rate of 2.4 per cent is available from Saven Financial, which serves Ontario residents. Saven is a division of FirstOntario Credit Union.
          Cashable GICs will not score you a rate to celebrate, but they do offer at least something for the investor who can’t or won’t lock money down.

          1. Hubert cashable 1 yr GIC 3.20%….cashable every 90 days, collect 3.05 for first 3 months, then 3.15, 3.25,3.35.

          2. Thanks for the information. My experience trying to time interest rates is barely better then my attempts to time the market. Even though higher rates in Canada are almost guaranteed at least through the fall….I’m more inclined…within reason…. to lock in the highest rate I can each time I’m ready to invest. Its probably not the optimal approach but anything that’s 4% or more is completely satisfactory in terms of my needs.

  19. I was wondering if any of my US fellow investors could clarify a point on George Weston (WN:TO). Of course they own Loblaws but they also own Choice Properties REIT.
    I was concerned that for US tax purpose that their REIT holdings might tilt them into being classified as a PFIC (Passive Foreign Investment Company) which is not an area I want to tread in.
    I’ve written to their Investor Relations group but haven’t heard back from them yet.

    1. George Weston is known as the bread man. Family owned corporation which has recently tilted towards financial sector.

      Last time I held stock or preferred they where eligible dividends in Canada.

      Recently sold my position due to the family desire to get out of the bread game which was my reason for owning.

  20. Was in my CDN discount brokerage account today looking at the fixed income options and came across a couple strip bonds which I purchased. 1) TD strip maturing Sep 14/23 yielding 3.46% and 2) BNS strip bond maturing Jan 18/24 yielding 3.71%. Not quite sure why they were available but figured I’d grab them quick as a place to park some money at a reasonable rate for less than 2 yrs.

      1. thanks Mike – certainly looks like good news on this Brookfield entity. But boy have my BBUC and BBU.un shares taken a hit this past 3 months. Oh well just hold on and let the Brookfield boys do their thing. CDN energy shares are still helping my portfolio offset some of the drops in prefs.

  21. I was wondering what people’s general opinion is of PREM WATSA and Fairfax Financial [FRFHF]. My only present exposure is thru bonds owned of Allied World, but I found reading FRFHF’s recent quarterly report to be fascinating… They seem to be so so conservatively run at this time with regards to their approach to dealing with rising interest rates , it’s almost like reading a cautionary tale to all who have not seen a rising interest rate environment. – https://seekingalpha.com/article/4505284-fairfax-financial-holdings-limiteds-frfhf-ceo-prem-watsa-on-q1-2022-results-earnings-call?mailingid=27545864&messageid=2800&serial=27545864.856&utm_campaign=rta-stock-article&utm_medium=email&utm_source=seeking_alpha&utm_term=27545864.856

    The comments that struck me include these:

    Second point I wanted to make is on investments. And for this you go into page 20, slide 20, and there were two major trends that we protected our company from. One was rising interest rates, interest rates were very low, we were getting 5 basis points or 6 basis points on our cash, we then reached for yield. So this on page 20, just shows you that interest rates have been coming down for 40 years and the reversal taking place is taking place dramatically. High inflation in the United States, high inflation in many parts of the world, and we really don’t know how high rates will go, but then now the tenure rates, treasury rates are very close to 3%. Our duration in our cash and bond portfolio of $37 billion is approximately 1.4 years, so there is very little loss to us as interest rates go up.

    Slide number 25, on page 25, in the AGM presentation shows that 400 basis points, you have — our investment income goes up by about 222 million — 220 million. So the investment income goes up because interest rates are going higher and we’re rolling over our cash and short-term holdings and they’re very short, so you get the higher interest income and it shows you that the pre-tax unrealized losses on our bonds 294 is very low because, of course, we’ve got a duration of 1.4 years. You’ll find that that’s a huge advantage we have and I think looking at competitors, most of our competitors don’t have a duration as low as we have.

    Yeah, so, Tom, we think the big risk today is the fact that people have not — for 40 years, interest rates have gone down and you have to be in the business for a long time, like in the ‘70s, to have seen how interest rates went up, inflation went up, interest rates went up. So the big risk today, as I said, is interest rates going up, and we don’t know how high it is going to go. So what we’ve done is just one or two year bonds — we are limiting our investments to one and two years, which by the way significant increase in interest rates have taken place in that term one to two years. And Brian Bradstreet, that’s what he’s limiting it to, two years max, and just rolling it over, as Peter told you in his presentation.

    And from Peter Clarke – At the end of the first quarter, the company’s insurance and reinsurance companies held 23 billion in cash and short-dated investments, representing 46% of our portfolio. With every 100 basis point increase in interest rates, this would provide us with approximately 230 million of additional annual income. We continued to have approximately 1.2 billion at the holding company, predominantly in cash and short-term securities, and our 2 billion bank line is totally undrawn. Please note our cash in the holding company is to meet any and every contingency that Fairfax might face. We are not making any long-term investments with this cash other than to support our insurance and reinsurance operations.

    1. 2wr, Touching in from Mendocino CA. Will be out until first day of Summer. It’s dead as a doornail everywhere we’ve gone, over 50% just closed. Looks grim, but good for early seasonal privacy. Good trout in CO.
      Yes, Prem is a real investor’s investor I have followed for years. This excerpt is the primer for us all. Fairfax is solid. How would you like to show up to work everyday and work on rolling a two year duration $37 billion dollar portfolio as they mature?!
      Another CN company that is almost mythical is Power Corp.
      Ramrod Managements.
      I just looked at my resets portfolio after six weeks of being gone and am gratified to see that the “panic” has created an opp for me to place a few divy accumulation buy limit orders. Hoping for Xmas in July.
      Jim Hymas (PrefBlog in Canada) has made a few comments recently about investors not really understanding what they are doing with the resets, but welcome to happy upgrading of quality.
      Some of the very recent CN issues, fixed rate, high IG’s are already down at $20, in a few short months! Wonder what the IPO buyers will do here with a 20% loss? Don’t buy ’til you smell blood and are willing to hold thereafter.

      1. Hardest part of investing is sitting on the bench and not doing anything. Why take risk when Gov/Muni/GIC paper finally found the elevator out of the basement.

        CDN Government up into the 3s:
        CANADA HOUSING 1.6% 15DEC31
        CANADA HOUSING TR 1.9% 15MAR31
        GOVERNMENT OF C 1.500% 01DEC31

        CDN Muni’s inched into the 4s:
        CITY ST JOHN’S 2.916% 03SEP40
        CITY ST JOHN’S 4.215% 24MAR36
        CITY OF TORONTO 4.700% 10JUN41
        MONTREAL QUE 3.15% 01DEC36
        WINNIPEG 5.2% 17JUL36

        GIC Paper
        HOME TRUST COMPANY Apr 29, 2023 1 yr 2.91
        HOME TRUST COMPANY Apr 29, 2024 2 yr 3.56
        PEOPLES TRUST Apr 29, 2025 3 yr 3.81
        PEOPLES TRUST Apr 29, 2026 4 yr 3.81
        ICICI BANK CANADA Apr 29, 2027 5 yr 3.85

    2. Just my personal observations about Prem Watsa – he is always referred to as Canada’s Warren Buffett and certainly has a lot of respect within the business community. BUT his results do not seem to back this us. A simple comparison of Fairfax to Berkshire Hathaway over past 5 yrs shows Berkshire up 93% vs Fairfax up only 13% (with a lot more volatility). When he came out with a Fairfax India fund a few years ago I invested in it but again it was a disappointment. His India fund over past 5 yrs is -13% whereas a Blackrock India ETF (XID) is +26%. So I certainly listen to what he says but have steered away from investing in his entities.

      1. Thanks, CB. That’s the impression I have had of him as well…. It does seem as though his underperformance in the past 5 years has been fueled by his over conservatism in managing investments and that seems to be consistent with the comments made in CC about how he’s feeling now…. might bode well for bond or preferred holders vs common shareholders though…..

      2. I took a small position in India fund too, DEEP, deep value allocations. That fund annual report is a look into his mind. I feel that that is what core certainty investing is all about, esp if you are looking out about 100 years (generational wealth) as the entire culture rises again.

      3. Looking at the last report the NAV is building nicely now that India is pulling out of covid. Problem with closed end fund structures is NAV and price can become dislocated to the benefit of the asset manager. Fairfax could tender realizing the funds $19/share asset value.

        Have been using ETF DNL as my allocation Global ex‐U.S.

  22. TSE:BAM.PF.C

    Is anyone else interested in jettisoning 5.8-6% issues to buy low coupon issues that have fallen through the first floor. Or wait patiently to pounce when they are in the mid to lower teen values.

    Thinking its still too soon.

  23. Yet another attack on wealth, success, shareholders and investors. Now that Trudeau has laid siege to the Energy Industry he’s going after the big banks with his “one time” (until the next time) windfall profit tax on banks.
    Any thoughts on this longer term from other dividend investors on the board.?

    1. Richard only good thing was the surplus tax on financial institutions was not as punitive as the Liberals had proposed in their election platform. Which is why banks are up today after selling for for the past couple weeks awaiting this new tax. Also their had been talk about a windfall tax on energy companies in view of their huge cashflow gains this year but luckily that didn’t materialize. So I remain with a good weighting in Cdn energy shares in addition to CDN banks.

      1. I was watching a piece on BNN about Suncor and their divestment off solar and wind which has a contribution margin of next to nothing and a change of focus to hydrogen and carbon capture which tie in to their current core competencies.
        Any thoughts on that? Through I’m happy to see Energy bounce back and seen some pundits who refer to the current situation as an “Energy Regression” not an “Energy Transition”. It still concerns me that this turn around could be short lived and Energy could turn into a value trap.
        And I agree, what showed up in the budget wasn’t as bad as I thought it was going to be either.

        1. Richard I follow Eric Nuttall who is frequently on BNN as energy specialist and also follow him on Twitter as he posts frequent updates supporting his view that CDN energy stocks are in a long term bull market. Took a look at some of my holdings and all (other than CNQ) are still well below their previous highs during last oil spike in 2014. ARC, MEG still only about 50% of their 2014 high, Baytex way below 2014 and even Suncor was $55 (CDN) back in 2018 ($33 CDN now). So I have taken some profits on names where I’m up over 100% in past year but still continue to hold good weighting and selling some covered calls for income and downside protection.

        2. Richard – Oil companies operate on a simple principle net present value for all projects.

          For carbon capture and all these green ideas to leave paper someone (cough tax payers) are going to need to de-risk these projects for them to compete with the real money maker projects.

          I suspect that is why no price tag was associated with this new virtue signal as tax payers may choke especially after swallowing de-risking costs of the TransMountain expansion project.

          1. My son works in the skilled trades and back in 2014 when his work was slow in Ontario the Alberta oil fields were booming. So he and a lot of other tradesmen from across Canada worked in the oil sands near Fort MacMurray. He was telling me the difference between how Imperial Oil (Exxon) got oil from the oil sands vs Suncor’s method. Imperial was basically huge open pit strip mines where massive dump trucks were loaded up with oily sand and then took it for processing. Suncor’s method was much less intrusive by having multiple small drilling huts spread over their properties. So our new Minister of the Environment (who was initially thought to be Alberta’s worst enemy) is now seemingly adopting a more balanced approach. IE. the government needs the huge tax revenues coming out of the oil patch right now to help pay for government spending (deficits) and if the oil companies can do it in an environmentally carbon neutral way Trudeau can have it both ways. I’m by no means an energy expert but only interpret what I read in the Globe & Mail.

            1. Oil companies got on board with the Alberta Government (NDP) to create new stricter environmental regulation and implement a carbon tax in an attempt to create social credit with the feds. Feds turned around and implemented different environmental regulation creating a double burden.

              As a result of this social experiment the pain got to great for Shell, Conoco, Devon, and Encana who exited Canadian assets creating a much smaller energy universe and a drastic cut in employment due to redundant accounting, administrative, engineering, and field operator positions being eliminated. Overall reducing the tax base during this period of industry consolidation.

              Canadian market is constrained due to no new export capacity to major markets being built. Rail costing $8-12/bbl additional. This has caused a no growth environment. With only debt repayments, share buybacks as ways to create earnings growth.

              Methods of oil extraction (Recovery Rate):
              Conventional Drilling = ~10%
              Horizontal Multi-Frac = ~12-15%
              Steam Assisted Gravity Drainage (SAGD) = 50-60%
              Mining = 90-95%

              In the Fort McMurray region Mining/SAGD are the two most common methods of oil extraction. Reason being is the oil is located between 50m to 500m below the surface which is unique to this region. Most drilled areas oil/gas deposits are located thousands of feet below the surface.

              Fort McMurray projects typically have horrendous upfront costs to setup the initial steam plants ($700M-1B) or Mines ($3B-7B) but due to the nature of the extraction process (60-95%), long reserve life (30-50yr) and low decline rate (oil production rate does not go down). Oil companies become money printing machines.

              Recently the focus in the Fort McMurray region has been to dramatically reduce extraction costs. Initial industry costs ranged from $40-85/bbl with the top operators now hovering around $21-25/bbl.

              As an energy investor. My focus has always been laser focused on this extraction cost as when commodity markets turn the lowest cost operator will survive. (lowest cost operator will eventually own all assets).

    2. It’s simple, Canadia is a social democratic country regardless of the PM, just as we point to whom ever is POTUS and blame the general American Accepted Policy of Hands-off Capitalism on some rotation of the Party of One…Private Wealth.
      So, who created the profits at the banks and even energy companies? The public “social” population., just as they do here in the US. The system there is slanted toward that social population and their welfare (which is NOT a bad word if taken by definition and not the political idealogues).
      Many other countries are balancing their model of Policy Structure too.
      Somewhere in the middle is the truth (small t).
      I’ve lived in Canada and like the people and the peaceful demeanor there, much wider view of the globe, their corporate governance and progressive managements. I’m in up to my neck in CN issues. We have some things to learn by examination/comparison/contrast.

  24. pow.pr.e – participating shares

    From the research I have done so far it appears the dividend floats with the common shares. Still searching for the prospectus to confirm the redemption date and call price.

    Does anyone have this information?

    1. In going through all the prospectus filings on Sedar the only reference to series E (Nov 13 2001 00:09:04 ET) does not make sense with how the preferred is operating.

      1. Right off their homepage if this may help:
        Seems to be a declaration of $.938/year, but a current payout of $1.98 to yield 4.5% currently, same div as the non-voting commons. Has followed common up recently and have 10 votes/share. Looks like the only preference is that it gets the votes.
        Do not see anything on any of the pref sheets for this E pref.
        If you want something specific I have had good experience emailing Investor Relations and getting quick response with Canadian firms. Try for prospectus link….??

        1. Micahc & Joel — you have me curious about this issue so I just emailed the investor services @ Power for more details on series E. Will post any reply I get from them. Power seems to be in an upswing past 12 months so not sure if buying the common and getting the same dividend may be a more attractive way to play it?

        2. super voting rights makes sense as this is a family controlled business.

          Also volumes have been almost non-existent.

          1. There is the ‘base div’ which makes it a pref.
            The story and tentacle stack of Power Corp is truly amazing and storied. Seems like they are trying to monetize its value. Almost like a hybrid vestige of Old Europe and Capitalism. Could be compared to BRK.
            Good luck and Skill

          2. Here is the reply from Power Investor Relations – basically just confirms what is already known.

            POW.PR.E are the Corporation Participating Preferred Shares.
            The Participating Preferred Shares are entitled to a non-cumulative dividend of 0.938¢ per share per annum before dividends on the Subordinate Voting Shares (POW) are paid and have the further right to participate, share and share alike, with the holders of the Subordinate Voting Shares in any dividends that may be paid with respect to the Subordinate Voting Shares.
            Dividends are payable when declared by the Board of Directors. The Participating Preferred Shares are entitled to ten votes per share.

  25. I suspect the answer is still: None
    I just had a Bell Of Canada 3.35% Corporate bond called a year early. I’d like to replace it with another Canadian Corporate Bond but as I remember, there were no Canadian FINRA like or other websites that listed bonds being offered in $CAD on the secondary market.
    I was wondering if anyone has any insight into this as I no longer have a brokerage account in Canada that I can use to do research.

    1. Canadian Corp bonds looks pretty slim pickings for around PAR issues:

      TELUS CORP 4.7% 06MAR48 Mar 6, 2048 Yield%:4.792 98.6309 BBBH/Baa1/BBB+
      FAIRFAX FINL HLDG 3.95%03MAR31 Mar 3, 2031 Yield%:4.455 96.3021 BBBH/Baa3/BBB-
      BROOKFIELD RENEW P4.29%05NOV49 Nov 5, 2049 Yield%:4.403 98.1883 BBBH//BBB+
      ALLIED PROPERTIES3.117%21FEB30 Feb 21, 2030 Yield%:4.333 91.9207 BBB/Baa2
      BROOKFIELD INFR 2.855%01SEP32 Sep 1, 2032 Yield%:4.278 88.1098 //BBB+
      ALLIED PROPERTIES3.394%15AUG29 Aug 15, 2029 Yield%:4.261 94.5400 BBB/Baa2
      SMARTCENTRES REAL3.526%20DEC29 Dec 20, 2029 Yield%:4.243 95.3026 BBBH

      1. The Canadian Bond market is generally slim pickings compared to the US market. Actually, I picked up a $US Telus 3.4% 2032 bond that trades on the US market to replace my Bell of Canada bond.
        Closing my Direct Investing account in Canada and moving the holdings down to the US has been a mixed blessing.

    2. Richard, Are you looking for specific range on term of maturity or more motivated by inv grade for sustained income? So many bond prices are already blown out to the high side and just now taking the first small dip back twd par.
      I have appreciated the High IG pref like the new issue IFC.PR.K 5.25 coupon with five years call coverage at $26 ramping down to $25 until 2031.
      Or look at GWO.PR.Y same, newer issue also very high IG, 4.5% coupon with same type of call profile. It has come way down to around to $22.60 yielding 5%.
      Of course these fixed may go lower yet and I am accumulating divs for an opportune time to stack a few of these away, maybe next tantrum (May?),
      These available thru Interactive Broker account bot directly in CN$ on TSX.
      The 5 year Rate Resets are getting bid up and I have had them run away from my buy orders by a full dollar in just the last two weeks since this current tantrum.
      These issues are pretty liquid too, unlike CN bond brokerage Markup/down scalping.
      Hope that may be helpful. JA

      1. Hi Joel….like many here, I’m an income investor though capital preservation remains my top priority. Other then a rare high yield corporate bond, investment grade with a company I feel comfortable with is a must. I’ve been investing in Rate Resets since around 2005 and own GWO.PR.R and GWO.PR.P as well as Rate Resets from the top four banks, CU,FTS and TRP. But whenever it was, about two years ago, when everyone moved away from Rate Resets and they seemed to become an investment class in decline or disuse I switched over to just buying common shares of strong dividend payers. I think the last Rate Reset I bought was TD.PF.M back in 2019.
        But from what you are saying it may be time to take another look at them. As much as I like TD, RY, BNS. NA, BCE, Telus, NTR and BMO I have to say…I sleep better at night when something has a par value.

        1. Richard FYI — from today’s Globe & Mail
          March 28, 2022

          The good news in bond land: 4 per cent yields now available – A roundup of investment ideas for active investors
          A funny thing about the bond market is that we measure damage by noting how much yields are going up.

          Rising yields means falling bond prices – that’s Bond Investing 101 stuff. But if you have new money to add to bonds, higher yields are a fantastic development.

          Government of Canada bond yields have rocketed higher lately, but we’re still talking about a five-year yield of 2.3 per cent. Provincial bonds offer minimally more yield than that, while investment-grade corporate bonds do better still. In fact, there are corporate bonds with a credit rating of BBB or more that offered a yield in late March of 4 per cent or more for maturities of five or six years.
          With inflation running at 5.7 per cent, no one’s going to set off fireworks to celebrate a 4 per cent bond yield. Yet this yield threshold does have some psychological value. It feels hefty and comparable to the yield on many much-loved dividend stocks.

          A quick check with a big online brokerage uncovered these 4 per cent corporate bonds:

          -First Capital Realty maturing May 6, 2026: Yield is 4 per cent.

          -Allied Properties REIT bonds maturing May 15, 2028: Yield of 4.1 per cent

          -TC Energy bonds maturing May 26, 2028: Yield is 3.98 per cent (these bonds are listed under TransCanada Pipelines, TC’s former name.

          -SmartCentres REIT bonds maturing Dec. 18, 2028: Yield of 4.3 per cent

          Prefer the instant diversification of a bond exchange-traded fund rather taking on the risk of holding one or two individual bonds? The iShares Core Canadian Corporate Bond Index ETF (XCB-T) offers an after-fee yield to maturity of 3.4 per cent. This ETF was down a substantial 6.7 per cent for the year through late March – that’s why the yield has been heading higher.

          Expect bond yields to climb further – how much exactly depends to a large extent on whether inflation plateaus or keeps growing. This will be bad for bond prices, but good for yield-hungry investors with new money to add to their accounts.

          — Rob Carrick, personal finance columnist

  26. Panicville,
    The transition to Google Drive messed me up I suppose and I have lost ability to call up Yuriy’s fabulous Canadian Sheets, especially the Reset Sheets.
    Does anyone know how to find the original link which allowed access?
    Sending Yuriy a shout-out too.
    Heeeellllppp! JA

    1. Hey! I figured it out! The icon changed to Drive from Sheets and I had to ask Google how to fix itself. Panic resolved.
      I had to look at the 14 point jump in the Five Year CN bond. Should begin to smash the fixed rate prices, saw that beginning last week. May be a place to by some very high grade with future divys for the annuity account over the next year?
      For some reason the Resets are down and many are way below par! Need more cash!
      Spinnin’ plates on an 81 degree day.

      1. Roger, Reminder: All these are available thru an IBKR account.
        Here are the original links from 5-11-21:

        “For Yuriy’s a jolly-good fellow!”
        I did have a moment of dependency panic. Thanks, JA

        Ok, now it’s ready:
        Resets https://docs.google.com/spreadsheets/d/1UB3TVsCo_bPDD4tkYu88tQxEO1KrybbY429PoObEYS0/edit?usp=sharing
        Fixed https://docs.google.com/spreadsheets/d/1nJTjD1H3PKvqcuntO7hL3rwI2p5-7AIBa5bplxKky-U/edit?usp=sharing
        Floating https://docs.google.com/spreadsheets/d/11vDz_swj2Z8-VQjl7nKgnlSRURz3k8Y8YLqCDMwC-II/edit?usp=sharing

        Please let me know if you find there some error-trouble-etc.

        1. Thanks for those, Joel A, very much appreciated. I’m new to IBKR…how do I find these at IBKR, if you have time.

          1. Are you asking what convention IBKR uses to designate pfds? It uses the .PR. convention. So BMO-Q would be entered as ‘BMO.PR.Q’. Was this any help?

          2. Enter on to a Watchlist. The search process (FIND) will ask you to verify the symbol (Click on the issue ADD) and description and the exchange, ie: TSX.
            Then once it on Watchlist click on it to open trade screen. You can create your own categorized Watchlists. You can arrange your trade screen view by using drop down menus like Unlock Design, size your panels and Lock Design (you arrange your view) . Play with it. My words may not be exact.
            There are good Google searches for things like: “TWS (Trader Workstation) set up for beginners”, ETC. Make it fun and click around on everything.
            The hard part for me was getting currency transactions. The Windows website login is much easier than the blackscreen TWS, but I have learned to like the blackscreen much better.
            Very best of Skills! JA Go slow.

            1. Thanks again Joel A. My mistake, I thought you meant the links were available thru IBKR (the 3 google spreadsheet links), and possibly missing another IBKR feature/resource.
              “Roger, Reminder: All these are available thru an IBKR account.”

              I’ve been using the Web Portal so far and not TWS.

  27. Brookfield jettisoning…oh…repositioning assets?
    Getting ready for next round of buying developed assets cheap? That’s their stock in trade. Still pissed about IPL myself.
    Looking for clues from the actions, NOT the words, of the pros.

  28. I would like to start a position in Nutrien (NTR) but am kind of concerned about their CEO turnover and lack of transparency about it. And then there is the competitive threat from BHP coming on before too long.
    Any opinions about NTR especially this turnover in top management?

    1. CEO exits are anybody’s guess but I do not believe it’s of consequence in a 23000+ employee company.

      Downside risk is taken care of by BHP take out bid as that sets the floor for business value.

      Recent risks to the business have been getting product to market via rails due to oil shipments increasing.

      Nitrogen based fertilizer products will continue to increase in demand as soil quality degrades due to ever increasing need for yield at all cost farming mentality.

      1. a take over by BHP or any other company is very unlikely to be approved by CDN competition bureau as NTR viewed as being too important to stay in CDN control. It is discounted by the various portfolio mgrs

        1. Buck, currently setting on a 80% gain in NTR and weighing options,what effect would Russian invasion of Ukraine have on, this stock ,thanks Mike

          1. NTR key product is fertilizers (food production).

            Natural gas is a key feed stock to make nitrogen based fertilizers. Russia presently supplies Europe with roughly 40%.

          2. Hi Mike

            I do hold NTR and similar to you have a nice gain on it. I did sell appx 25% after CEO left last month but also taking some profits was a reason too. Still hold shares and will continue to hold as commodity upswing still has legs. I attached below NTR website and you can see they have wide global operations but none close to Russia. So to me as much as a Russian invasion would not doubt likely cause short term volatility for NTR it would likely only benefit them.


            1. Buck, “you the man!” Just the answer I was looking at. By the way got big gains on BAM, BIP an the free C shares. Thanks Mike

            2. Buck took out half my position “[this afternoon” 3/4/ 2022 on NTR @$93.50 got my cost below zero gonna let the rest run thanks, Mike

              1. Good for you Mike – unfortunate that it takes a crisis like the situation in Ukraine to actually help the TSX to out perform. It was actually up 1.4% this week in view of all the CDN energy and commodity stocks. Something I didn’t realize until the invasion of Ukraine is Canada has the third highest number of Ukrainians heritage (1.4 million) after Ukraine itself and Russia. A huge number came after WW I and II and settled in our Prairie provinces for farming.

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