Tag Archives: canada preferred indices

Canada: Bonds Recover as Central Bank Leaves Rates Unchanged

The Bank of Canada left its key interest rate unchanged at 0.5% last Wednesday, Sept. 9, 2015.  The message from the central bank was that it could be “considerable time” before there is significant recovery from the collapse of oil prices that pushed the economy into a technical recession.  The last rate cut was back Read more […]

Applying a Laddering Strategy to Preferred Portfolios in Canada

A laddered preferred portfolio uses the same concept as bond laddering, where a portfolio is constructed with instruments of staggering maturities so that a fixed portion of the portfolio matures each year. Rate-reset preferreds are used in a portfolio laddering strategy since they incorporate a reset date every five years. On the reset date, which Read more […]

Introduction to Preferred Shares in Canada

What are Preferreds? Preferred shares are hybrid equity securities, with characteristics that lie between the traditional fixed income and equity asset classes.  Like common shares, preferred shares represent ownership in a company and are listed as equity on the balance sheet; the ownership isn’t entirely the same though.  Preferreds have preferential rights to dividend payments Read more […]