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Greetings all,
BMO has released an IPO for a new series of preferred shares
Bank of Montreal
Non-Cumulative 5-Year Rate Reset Class B Preferred Shares
Series 23
It's one of those rate reset ones based on the 5-Year Government of Canada Bond Yield + 2.41%
I'm considering this for my TFSA.
The initial fixed rate period is until Feb 2015.
One risk I see is interest rates will rise during the first 5 years leading to a fall in value of the shares.
However, it appears these are perpetual shares so in 2015 the rate should reset based on the then GoC yield.
Any opinions?
Cheers
-Harold
BMO has released an IPO for a new series of preferred shares
Bank of Montreal
Non-Cumulative 5-Year Rate Reset Class B Preferred Shares
Series 23
It's one of those rate reset ones based on the 5-Year Government of Canada Bond Yield + 2.41%
I'm considering this for my TFSA.
The initial fixed rate period is until Feb 2015.
One risk I see is interest rates will rise during the first 5 years leading to a fall in value of the shares.
However, it appears these are perpetual shares so in 2015 the rate should reset based on the then GoC yield.
Any opinions?
Cheers
-Harold