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Discussion Starter #1
i would like to understand under what circumstances perpetual prefs. get redeemed by the company?
say, the typical rate reset perpetual prefs linked to the GOC 5 yr. benchmark yield + a spread%.
the banks and utilities issue lots of these
most of them trade at a premium once listed on the exchange
assuming interest rates don't get any lower, how would these prefs get redeemed?
 

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I beleive that generally they only get redeemed in very unusual circumstances such as reorganization, expropriations, etc. That's why they are called perpetuals. Treat them as is they will never be redeemed. Obviously you would read the original prospectus if you were considering a purchase.
 
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