There used to be perpetual preferreds that did poorly when bonds went up. He does not see a lot of growth here. He has been trading it. He trades a range. He prefers the indexed strategy to going into specific preferreds. HPR-T is an alternative he prefers.
ZPR-T vs HPR-T? Preferred shares in Canada are subject to resets, so they’re a great thing when interest rates rise. But when rates go down, they get creamed. It’s unlikely that rates will go down anytime soon. ZPR-T is laddered, and very short term and floating rate. Not a bad strategy. A better strategy would be HPR-T, which is actively managed by Fierra a fantastic manager in the fixed income space. The price on HPR-T is kinda in the same category as ZPR-T but you get the advantage of Fierra without paying a lot. Prefers HPR-T to ZPR-T.
BMO S&P/TSX Laddered Preferred is a Canadian stock, trading under the symbol ZPR-T on the Toronto Stock Exchange (ZPR-CT). It is usually referred to as TSX:ZPR or ZPR-T
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On 2023-06-01, BMO S&P/TSX Laddered Preferred (ZPR-T) stock closed at a price of $8.61.