Enbridge Inc

ENB.PR.Y-T

Analysis and Opinions about ENB.PR.Y-T

Signal
Opinion
Expert
COMMENT
COMMENT
January 23, 2015

This company is a very large part of the preferred share market in Canada, roughly about 10% of the market. Enbridge Inc has done a “drop down” procedure that a lot of energy companies are doing right now. They took about $17 billion in assets and dropped them down to their subsidiary income fund. This caught investors and credit rating agencies by surprise. The assets don’t go away. Right now there seems to be a little bit of risk as to whether they will continue this procedure, but he thinks they are fine and the company is going to recover.

Enbridge Inc (ENB.PR.Y-T)
January 23, 2015

This company is a very large part of the preferred share market in Canada, roughly about 10% of the market. Enbridge Inc has done a “drop down” procedure that a lot of energy companies are doing right now. They took about $17 billion in assets and dropped them down to their subsidiary income fund. This caught investors and credit rating agencies by surprise. The assets don’t go away. Right now there seems to be a little bit of risk as to whether they will continue this procedure, but he thinks they are fine and the company is going to recover.

Randy LeClair
Chief Investment Officer & Portfolio Manager, Portland Investment Counsel
Price
$22.020
Owned
Yes
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